Mass layoffs: Paytm fires over 1,000 employees as cost-cutting measure
Mass layoffs: Paytm's parent company, One 97 Communications, has decided to fire over 1,000 employees across various departments in an effort to cut costs across the company, according to the Economic Times.
Paytm is in the process of realigning its various businesses and, as a result, is looking to cut costs, according to the news outlet. This means that more layoffs may occur across the company in the coming months. The layoffs have all occurred in the last few months.
This means that the move will affect more than 10% of Paytm's total workforce. This move follows the UPI platform's removal of small-ticket consumer lending and its "buy now, pay later" lending segment.
Paytm's layoffs have become one of the largest in a new-age tech firm in India, with over 1000 job cuts. This year, startup companies have led the way in layoffs across India, laying off thousands of workers due to a lack of funding and a company's economic restructuring.
According to news reports, the majority of the job cuts at Paytm will be in its lending business, which has seen exponential growth in the last year. Paytm Postpaid usually grants loans of less than $50,000, but it is rapidly expanding into wealth management.
However, Paytm's stock has taken a significant hit this year, falling around 20% on December 7. The stock dropped abruptly after the company announced that it would discontinue the Paytm Postpaid loan plan.
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