Paytm, India's digital payment platform, has announced probable job cutbacks as it seeks to optimize operations by reducing non-core assets. The move comes following Paytm's first-ever sales decrease, which was revealed on May 22.

Paytm's net loss more than tripled year on year to Rs 550.5 crore in the March quarter (Q4) of the fiscal year 2023-24 (FY24), up from Rs 167.5 crore in the same time the previous year. Revenue from operations fell by 2.9 percent year on year, to Rs 2,267.10 crore in Q4FY24, compared to Rs 2,334 crore in the same time the previous year.

Paytm CEO Vijay Shekhar Sharma addressed shareholders that the business anticipated a short-term financial effect on sales and profitability as a result of the interruptions in Q4. In a letter to shareholders, he stated, "We anticipate a near-term financial impact on our sales and profitability as a result of business interruptions in Q4.

He said, "This includes the steady state consequence of halting the PPBL wallet. We also suspended a few additional payments and loan programs for our clients throughout the previous quarter, and I am pleased to report that many of these products have been restored or are in the process of restarting."

According to Sharma, personnel expenditures have grown dramatically in recent years as a result of investments in technology and financial services. He stated that, while investments would continue, the corporation will take initiatives to cut personnel expenses. These procedures might save up to Rs 400-500 crore a year.

Sharma also stated that the firm is employing artificial intelligence to improve customer service, which is expected to generate new income and save costs. The corporation is enhancing its governance by employing specialists and examining processes. They are also stepping up regulatory engagement and focusing on compliance.

"We are also taking efforts to enhance our group's governance system (particularly for regulated firms) by recruiting subject matter experts as consultants or independent directors, examining different procedures, and so on. I am ensuring that we have increased regulatory involvement and a stronger focus on compliance, both in text and spirit." Sharma issued a letter to shareholders.