The parent company of Paytm has reportedly let go of over a thousand workers from its engineering, sales, and operations departments in an effort to cut expenses and to consolidate operations, according to the sources. The layoffs that have taken place over the last several months represent one of the biggest personnel reductions in an Indian corporation this year.
These days, Paytm’s layoffs rank among the largest of any new age tech company in India, with over a thousand jobs lost. Due to a lack of finance and internal business reorganisation, startup enterprises have been the largest employers in India this year with thousands of layoffs.
The layoffs have affected more than 10% of Paytm’s personnel overall, according to the article. The move to reduce employment is in line with Paytm’s larger initiatives to reorganise its business operations. As it navigates adjustments to its operational structure, the fintech company plans to implement additional cost-cutting initiatives in the coming months.
As per the sources, Paytm’s lending division, which has experienced rapid expansion in the past year, is probably responsible for the majority of the company’s employment losses. Paytm Postpaid is currently expanding into wealth management, although it primarily offers loans up to ₹50,000.
However, on December 7, there was a notable 20% decrease in Paytm’s stock price. Stock fell sharply after the business announced that it will be cancelling the Paytm Postpaid loan product.
This year, the majority of employment losses in the nation have been attributed to younger tech businesses, not simply Paytm. This year, new businesses laid off over 28,000 workers, according the sources.
In addition to, 2023 saw layoffs in a number of industries, including IT, edtech, and start-ups. The main justifications given for these actions were global headwinds and the approaching financing winter.