Paytm denies any such development. Their responses are below.

Paytm Payments Services Limited (PPSL), the payments aggregator arm of Vijay Shekhar Sharma-led Paytm, is undergoing a major leadership overhaul and workforce restructuring.

The company has laid off all employees above the General Manager (GM) level, sources told The Head and Tale. “Nearly 10-15 senior executives—at the AVP, VP, and SVP levels—have been let go,” a person aware of the matter said. “Essentially, the entire senior leadership at PPSL has been wiped out.”

The layoffs come amid a broader downsizing at Paytm’s parent entity, One97 Communications Limited (OCL). If another source is to be believed then more than 200 employees across verticals have been laid off this week, with the company shutting down some business units and two regional offices in Pune and Chandigarh.

“Employees in these offices are given two choices—relocate to closest Delhi or Mumbai offices, or resign. Some have also been placed on garden leave,” a source revealed.

Responding to our queries, Paytm spokesperson said:

“We would like to clarify that the claims regarding layoffs of all senior executives at Paytm Payments Services Ltd (PPSL), office closures, and shut down of business verticals are inaccurate and misleading.

Regarding PPSL’s leadership and structure, as we had communicated earlier, we are looking for a suitable replacement for PPSL CEO and developments are subject to regulatory approvals. Once finalized, we will communicate as required. Our focus remains on strengthening business operations and ensuring seamless services for our business partners.

As a part of post Covid, return to office, all non-field employees have been asked to report to the existing offices in Noida, Gurugram, Bengaluru and Mumbai. This is not linked to shut down of any offices.

We appreciate your efforts in reaching out for clarification and encourage responsible reporting based on verified information.”

The leadership shake-up at PPSL follows a series of layoffs and restructuring efforts that began in January, when CEO Nakul Jain exited the company.

“At the time, about 5-10 employees were moved to the parent company, while another 25-30 were let go. A second round of layoffs took place in February, affecting another 5-10 employees. Now, the company has removed its entire senior leadership team,” one of the sources informed.

According to sources, only about 25-30 employees remain at PPSL, primarily in account management and onboarding roles.

Meanwhile, OCL’s leadership is now indirectly managing PPSL. Paytm’s offline business head, Tejinder Singh, is overseeing the payment aggregator unit’s day-to-day operations.

In January, The Head and Tale reported that Paytm plans to merge its online and offline businesses, with chief business officer Tejinder Singh set to lead the merged unit.

This development brings uncertainty to Paytm’s payment aggregator business, which is still awaiting final approval from the Reserve Bank of India (RBI) for its payments aggregator (PA) license.

The Head and Tale had previously reported that the company re-applied for the license in January after addressing RBI queries.

PPSL has been barred from onboarding new merchants for over two years, significantly impacting its revenue. In FY23, the payments aggregator business accounted for about a quarter of Paytm’s consolidated revenue.

One of the concerns in the approval process has been the scrutiny over Chinese fintech giant Ant Group’s 9.88% stake in Paytm. This stake raised concerns with Indian regulators, delaying government clearances.

In August 2024, PPSL received approval from the Ministry of Finance to invest an additional $6 million (Rs 50 crore) into its payment services business. The move was aimed at meeting compliance requirements and bolstering its case for the PA license.

In a separate development, PPSL has announced that starting April 1, it will stop using third-party payment platforms like Juspay and instead integrate directly with merchants. This move positions Paytm ahead of its peers in adapting to industry changes.