Massive Layoff: Paytm Sacked Over 1,000 Employees In Cost-Cutting Measures
New Delhi: Digital payments and financial services provider Paytm’s parent company One 97 Communications has announced plans to fire more than 1,000 employees from several departments. The decision has been taken in an effort to cut costs in the company, reported the Economic Times. Notably, Paytm is going through a process of realigning various businesses due to which the company is looking to cut costs, reported ET. This means that more Paytm employees could face layoffs across the country in the coming months.
The move will impact more than 10 percent of the entire workforce of the company. Not only that, it will also the UPI platform’s withdrawal of small-ticket consumer lending and its “buy now pay later” lending segment.
After sacking more than 1,000 employees, Paytm have become one of the biggest layoffs in a new-age tech firm in the country. Notably, startup companies in the country have been leading in layoffs in 2023, with removing thousands of employees amid lack of funding and economic restructuring.
Who’s Job Is In Danger
Major job cuts in Paytm are likely to happen from its lending business, which has witnessed trendous growth over the last year, ET reported citing sources. It is worth noting that, Paytm Postpaid which usually provides loans smaller than Rs 50,000 but is soon transforming intowealth management.
Paytm Stock’s Downfall
The company’s stock has witnessed a massive downfall in 2023, plunging around 20 percent on December 7. The steep fall occurred following the company’s announcement of discontinuing the Paytm Postpaid loan plan.
Layoffs Across Startups
Not just Paytm, but newer tech startups have also layoff several employees across the country this year. As pr the from Longhouse Consulting, that new companies have sacked as many as 28,000 employees in 2023. The layoff rates have surged exponentially as compare to last two years.
In 2021, only 4,080 people were laid off from tech companies, whereas 20,000 job cuts were witnessed in 2022. Majority of the employees (28,000 people) were laid off just in six months this year.