Paytm has expanded its employee stock option plan or ESOP pool in a bid to retain talent. Amidst the ongoing financial crisis, the fintech firm has allocated 281,394 equity shares to its eligible employees. These fully paid-up equity shares have a face value of one rupee each.
The allocation of stocks has reportedly been done under the Employee Stock Option Scheme 2019 and the Employee Stock Option Scheme 2008.
With this move, the total issued, subscribed and paid-up equity share capital stands at Rs 636,274,090 (comprising 636,274,090 equity shares of face value of a rupee each).
The fintech major, which has been battling regulatory issues and losses has been grabbing headlines for all the wrong reasons lately.
Paytm has been clear about wanting to streamline operations by pruning non-core business lines and maintaining a leaner organisational structure through AI-led initiatives. It remains focused on driving profitability. As part of this endeavour, its parent company, One97 Communications had announced layoffs in early June without disclosing the specific number of employees impacted.
In the second week of June, media reports said that Paytm employees who were laid off recently were being asked to return the retention bonus. Their offer letters apparently stated that the retention bonus would be recovered by the company if they quit before 18 months of joining. The employees alleged that many were asked to ‘voluntarily resign’ without being given any warning or notice.
Now, media reports say that the company may cut more jobs in this fiscal. The digital payments company posted consolidated losses amounting to over Rs 549 crore in Q4 of 2023-24, way more than the earlier quarter.
