Paytm Layoffs: After Announcing To Hire 50,000 People in Sales, Fintech Major Lays Off 1,000 Employees as Part of Cost-Cutting Measures
Amid announcement of hiring 50,000 people in sales and AI integration, Paytm lays off over 1,000 employees as a part of cutting cost.
Mumbai, December 25: One 97 Communication, the parent company of Paytm, has reportedly sacked 1,000 employees from multiple departments to streamline its business and reduce costs as a part of a strategic business decision. The Paytm layoff has impacted at least 10% of the workforce. According to multiple reports, the job cuts have been implemented for months, marking significant layoff rounds at the end of the year.
According to a report from Economic Times, Vijay Shekhar Sharma-run financial technology company Paytm announced to hire 50,000 sales people a few days before announcing the layoffs. The hiring aimed to get more merchants across small cities and towns to sign up as a part of revamping the money management products. Christmas 2023: Live Christmas Trees Release Chemicals Called ‘Volatile Organic Compound’ That Can Create Fresh Smell Affecting Indoor Air Chemistry, Say Researchers.
According to the reports, the decision taken by Paytm to let 1,000 people go was followed by recent withdrawal or scale down of small-ticket consumer lending of the 'buy and pay later' (BNPL) segment due to RBI's regulatory restrictions on unsecured loans. The layoffs at Paytm have reportedly been "one of the significant job cuts" made by Indian fintech companies.
A few days back, Paytm also announced its AI automation to generate higher profit and serve customers. In September, the fintech major had reportedly over 38 million merchants, and over 10 million were paying for the QR Codes, card machines, and Soundboxes. The Paytm Founder and CEO Vijay Shekhar Sharma told Bloomberg that the company should cross 50 million merchant-based signups on the platform annually. China’s PC Market Likely To See 18% Decline in 2023 and Modest 4% Growth in 2024: Report.
According to the report by Times of India, Paytm had over 4,081 employees in 2021, 20,000 in 2022, and 28,000 in the first three quarters of 2023. The TOI report further mentioned that the regulatory landscape has also affected the Paytm Postpaid initiative that granted loans under 50,000. Paytm has reportedly shifted its focus towards wealth management and insurance broking. The latest round of Paytm job cuts contributed to the growing trend of layoffs in 2023 following tech giants like Amazon, Meta, and others.
(The above story first appeared on LatestLY on Dec 25, 2023 11:07 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).