Job Cut: It is being said that the fintech company has once again adopted the path of laying off a large number of employees for cost cutting…
Fintech startup Paytm is once again in the news for the wrong reasons. There are reports that Paytm has once again decided to expel its employees from the company. According to reports, Paytm has dismissed about 10 percent of its total employees in this retrenchment.
So many employees became victims of retrenchment
According to an ET report, Paytm’s parent company One97 Communications has laid off more than 1000 employees this time. The ET report, quoting two sources related to the matter, has claimed that these layoffs have taken place within the last few months and employees of various units of Paytm have been victims. It is being told that Paytm has done this layoff to reduce its costs and to reorganize its various businesses.
Biggest layoff of Indian startup
In this layoff of Paytm, about 10 percent of its total workforce has been affected. This is considered to be one of the biggest layoffs ever in any Indian startup. 2023 has also not proved to be a good year for startup companies. This year, Indian startups laid off more than 28 thousand employees in the first three quarters. Earlier in the year 2022, startup companies had laid off more than 20 thousand employees and in 2021, more than 4 thousand employees had been laid off. If we look at the fintech sector, Zestmoney is going to be closed by the end of this month.
Impact of RBI action
Talking about Paytm, the series of bad news is not stopping for it. Earlier, the Reserve Bank had imposed regulatory restrictions on unsecured loans, which also affected Paytm. After RBI action, Paytm decided to close small ticket consumer lending and buy now, pay later business. It is being said that employees of these two segments have been most affected by the latest layoffs.
Stock performance under pressure
The company is continuously struggling in the stock market also. Paytm shares have fallen by about 28 percent in the last one month. Its price is down by more than 23 percent in the last 6 months. In the beginning of the month of December, Paytm stock also had to face lower circuit of 20 percent. Now after the news of layoffs comes out, there is a possibility of further adverse impact on the shares.
