Paytm Reduces Employee Count by 4,600 in FY25 Amid Cost Optimisation Drive

Paytm, a leading Indian fintech player, has downsized its workforce by 4,600 in FY25, citing organisational efficiency and productivity gains through technology. This move comes as the company posts its first-ever profitable quarter.

Significant Reduction in Workforce During FY25

One 97 Communications, the parent firm of Paytm, reported a decline in its average on-roll employee headcount from 43,960 in FY24 to 39,368 in FY25. Of these, 32,614 employees were engaged in sales roles. This 4,600 headcount reduction reflects Paytm’s strategic shift towards a leaner organisational structure. 

The restructuring is part of a broader realignment aimed at bolstering core functions like payments while reducing peripheral business activities.

Cost Optimisation Yields Major Savings

The workforce reduction led to a 21% year-on-year drop in employee costs, excluding Employee Stock Option Plan (ESOP) expenses. In FY25, employee-related expenses stood at ₹2,473 crore, down from ₹3,124 crore in FY24, resulting in ₹651 crore in savings. Paytm attributed these savings to improvements in operational efficiency driven by automation and technology, even while continuing to expand its sales distribution network.

Post-Profitability Strategy and Leadership Commentary

Following its first profitable quarter in Q1FY26 with a net profit of ₹123 crore, a turnaround from the ₹840 crore loss a year ago, Paytm is focusing on disciplined cost management. Founder and CEO Vijay Shekhar Sharma, in a letter to shareholders, outlined that the company pruned non-core businesses and made strategic investments in high-growth areas. Esop expenses were negligible in the June quarter at ₹30 crore due to delayed grants, but full-year projections are ₹250-275 crore.

Read More: Paytm Bulk Deal: Antfin Exits, Societe Generale Buys ₹720 Crore Worth of Shares!

Focus on Technology and Growth Investments

While implementing cost-cutting measures, Paytm also redirected its focus towards productivity through technological innovation. The shift has enabled the company to allocate more resources towards expanding sales while ensuring efficient capital allocation. The leadership emphasised balancing cost control with future growth opportunities.

One97 Communications Share Price Performance

On August 7, 2025, One97 Communications share price opened at ₹1,055.00 on NSE, below the previous close of ₹1,055.40. During the day, it surged to ₹1,070.90 and dipped to ₹1,048.60. The stock is trading at ₹1,062.40 as of 3:28 PM. The stock registered a moderate gain of 0.66%.

Over the past week, it has declined by 1.30%, over the past month, it has moved up by 12.96%, and over the past 3 months, it has moved up by 21.63%.

Conclusion

Paytm’s FY25 workforce rationalisation and employee cost reduction reflect its renewed focus on profitability, efficiency, and strategic capital deployment. The company’s streamlined operations and disciplined approach position it for sustained growth in India’s evolving digital payments landscape.

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