Paytm has trimmed its workforce by over 10% in the current financial year (FY25), reducing employee expenses by Rs 650 crore as part of a broader restructuring effort. According to its latest annual report, the fintech major brought down its on-roll headcount from 43,960 in FY24 to 39,368 in FY25, marking a reduction of 4,600 employees.
The company noted that out of the remaining workforce, a substantial 32,614 employees are now focused on sales. This aligns with Paytm’s stated strategy to streamline operations while intensifying its distribution efforts.
Employee costs—excluding stock-based compensation—fell by 21% year-on-year, down to Rs 2,473 crore in FY25 from Rs 3,124 crore in FY24. This comes after a steep 34% rise in employee costs in FY24 compared to 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 stated in the report.
The workforce rationalisation comes on the heels of the Reserve Bank of India’s regulatory crackdown in March 2024, which forced Paytm Payments Bank to halt operations, severely affecting the company’s business verticals. Following the RBI action, Paytm underwent several rounds of layoffs and faced complaints with the labour ministry in June 2024. The matter was later settled in July, with Paytm agreeing to compensate affected employees with notice period pay and retention of joining bonuses.
Q1 FY26 results
Despite the upheaval, Paytm’s efforts at cost control appear to be paying off. In the quarter ended June 2025 (Q1FY26), the company swung to a profit of Rs 123 crore, compared to a loss of Rs 840 crore in the same quarter last year. Esop-related expenses for the quarter remained minimal at Rs 30 crore, owing to a delay in stock grants. The company expects full-year Esop costs in the range of Rs 250–275 crore.
In a 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.”
Antfin’s exit
Meanwhile, Paytm also witnessed a major shift in its ownership structure. Chinese firm Antfin, the last remaining foreign investor from the Alibaba group, exited the company entirely this week. Antfin sold its 5.84% stake—worth around Rs 3,800 crore—in a large block deal, bringing its holding in One 97 Communications (Paytm’s parent company) to zero.
The deal, executed via Goldman Sachs and Citi at a floor price of Rs 1,020 per share, marks the end of Chinese ownership in Paytm. Over the last two years, major pre-IPO investors such as Alibaba, SoftBank, and Berkshire Hathaway have fully exited. Elevation Capital, formerly SAIF Partners, is now the only notable pre-IPO investor left with a 15.4% stake as of June 2025.
“The current block deal removes Antfin from Paytm’s cap table entirely, reducing its holding to zero. This exit aligns with broader regulatory and geopolitical dynamics with a more India-dominated shareholding structure as the company has faced scrutiny in the past over foreign ownership and data localisation concerns,” JM Financial said in a note.