Paytm Lays Off Over 1,000 Employees

Paytm's parent company, One 97 Communications, has opted to terminate around 1,000 employees across several divisions in a bid to decrease costs throughout the organisation, according to the Economic Times.

Paytm is in the process of realigning its multiple operations and, as a result, is aiming to slash costs, according to ET. This suggests that further layoffs may occur across the corporation in the coming months. The layoffs have all occurred in the last few months.

This means that the transfer will affect more than 10 per cent 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 division.

Paytm's layoffs have become one of the largest in a new-age tech firm in India, with over 1000 job cutbacks. This year, startup enterprises have led the way in layoffs across India, laying off thousands of workers due to a shortage of funding and a company's economic reorganisation.

According to ET, the majority of the job layoffs at Paytm would be in its loan division, which has seen exponential growth in the last year. Paytm Postpaid typically grants loans of less than $50,000, but it is rapidly expanding into asset management.

However, Paytm's stock has taken a significant knock this year, plunging approximately 20 per cent on December 7.