According to a report in the Economic Times (ET), Paytm’s parent company One 97 Communications has laid off over 1,000 employees from various departments as part of strategic measures to streamline operations and reduce costs. The job cuts over the past few months are among the most significant job cuts at Indian technology companies this year.
The job cuts, which will affect more than 10 per cent of Paytm’s total workforce, come in the wake of recent moves such as discontinuation of small consumer loans and discontinuation of the UPI platform’s ‘buy now, pay later’ loan arm.
The decision to cut jobs is in line with Paytm’s broader efforts to refocus its business. The fintech company plans to implement further cost-cutting measures in the coming months to accommodate changes to its operating structure. Most of the job cuts are due to Paytm’s lending business, which registered strong growth last year. A Paytm spokesperson told ET that while the exact number of employees affected is unknown, the fintech company is working to reduce labor costs by 10-15 per cent this fiscal year. The spokesperson added that Paytm’s cash balance at the end of September was Rs 8,754 crore.
Paytm Postpaid, known for offering loans under Rs 50,000, is also foraying into the wealth management space. The company faced a setback on December 7 when its stock price plummeted by around 20% following the discontinuation of the Paytm deferred payment credit plan. Trends in industry downsizing
Paytm’s layoffs add to the trend of job cuts among Indian startups in 2023, with over 28,000 people to be laid off by new businesses in just six months, according to ET. Layoff rates have been accelerating since 2022, with global tech giants such as Meta and Amazon significantly reducing their workforces.
Apart from Paytm, other technology startups like PhysicsWallah, Udaan, Third Wave Coffee and Bizongo also experienced significant job cuts this year. Additionally, industry giants like Flipkart and Byjus have chosen not to provide ratings for their top performers, reflecting the evolving dynamics within the Indian technology ecosystem. The news also comes days after fintech startup ZestMoney announced it would shut down after a failed turnaround attempt.
For more information, see https://happenrecently.com/zepto/?amp=1
