New Delhi: In response to ongoing financial challenges and a need to cut costs, Paytm's parent company, One 97 Communications, has recently decided to lay off more than 1,000 employees across various departments. This move is part of Paytm's larger effort to realign its various business segments.
Reports from the Economic Times highlight that this series of layoffs, which have occurred over the past few months, is impacting over 10 percent of Paytm's entire workforce. The company is undergoing a restructuring process, which may lead to additional job cuts in the coming months. (Also Read: This Woman Made Rs 650 Crore In A Single Month; She Is The Wife Of...)
The decision comes at a time when Paytm is recalibrating its businesses, including the withdrawal of small-ticket consumer lending and its "buy now pay later" lending segment on the UPI platform. (Also Read: Invest In This LIC's Policy For Double Benefits: Check Details)
Sources suggest that the majority of the layoffs at Paytm are likely to be concentrated in its lending business, which has experienced significant growth in the past year. Paytm Postpaid, known for offering loans smaller than ₹50,000, is reportedly shifting its focus towards wealth management.
However, the company's stock has faced challenges, experiencing a notable 20% decline on December 7. This drop followed the announcement of the discontinuation of the Paytm Postpaid loan plan.
Paytm's situation reflects a broader trend in the startup ecosystem in India, where newer tech startups have been at the forefront of job cuts this year.
According to data from Longhouse Consulting, around 28,000 people have been laid off by new companies in 2023, a substantial increase compared to 4,080 layoffs in 2021 and 20,000 in 2022.
Various startup companies, including PhysicsWallah, Udaan, Third Wave Coffee, and Bizongo, reported high layoff rates this year. Additionally, established firms such as Flipkart and Byjus opted not to provide appraisals to top performers.
