New Delhi: As part of an ongoing restructuring to streamline operations and concentrate on core development areas, Paytm reduced staff expenses by Rs 650 crore and let off over 10% of its workers in the current fiscal year.
The fintech giant cut its on-roll workforce from 43,960 in FY24 to 39,368 in FY25, resulting in a net reduction of 4,600 positions, according to its FY25 annual report. According to the corporation, 32,614 of the remaining staff work in sales, highlighting a renewed focus on distribution expansion.
Excluding stock-based pay, employee costs decreased 21% from Rs 3,124 crore in FY24 to Rs 2,473 crore in FY25. This comes after a sharp 34% rise in FY24 over FY23.
“This was driven by our continued efforts to create a leaner organisation structure and increasing productivity leveraging technology, while we continue to invest in our sales team,” the company said in the report.
Paytm saw several waves of layoffs after the regulatory action, and in June 2024, the Labour Ministry received complaints about the company. In July 2024, the company agreed to compensate employees for their notice period and enable them to keep their joining bonuses, according to reports.
Paytm’s cost-cutting strategies have contributed to a turnaround in spite of the reductions. According to its most recent financial statements, the company reported a profit of Rs 123 crore for the quarter that ended in June 2025 (Q1 FY26), as opposed to a loss of Rs 840 crore for the same period the previous year.
Because stock issuance was delayed, ESOP-related expenses in Q1 were Rs 30 crore, which was far less than typical. Paytm anticipates that the entire ESOP expenses for FY26 will fall between Rs 250 and 275 crore.
In his letter to shareholders, founder and CEO Vijay Shekhar Sharma said: “Now, having crossed the milestone of profitability, I’m proud of our team for their disciplined execution, deep conviction, and relentless innovation. We took some tough calls, pruned and sold businesses, and doubled down on our core of payments, ensuring the preservation and growth of our cash reserves.”
