- By Aditya Pratap Singh
- Mon, 25 Dec 2023 11:27 AM (IST)
- Source:JND
India's one of the top Fintech firms 'Paytm' laid off 1000 employees from its operations, sales and engineering team after the company decided to use AI technology to improve the company's efficiency.
As per a report in the Economic Times, Paytm is in the process of restructuring various businesses and therefore wants to cut costs. This indicates more layoffs across the company in the coming months. These layoffs have happened in the past few months.
After 1,000 job cuts, the layoffs at Paytm have become one of the biggest by a new-age technology company in India. Startups have been at the forefront of layoffs across India this year, cutting thousands of jobs amid the financial crisis and the company's financial restructuring.
Most of the job cuts at Paytm are likely to come from its credit business, which has seen tremendous growth over the past year, ET reported citing sources. Paytm Postpaid typically offers loans below ₹50,000, but will soon venture into wealth management.
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However, Paytm's stock has taken a big hit this year, falling nearly 20 per cent on December 7. Shares of Paytm fell sharply after the company announced that it was withdrawing its postpaid credit scheme.
Recently, Paytm announced to closing of its low-ticket size loan facility to focus on big amounts of loans, the move played a significant role in the latest layoff.
According to the report, apart from Paytm, new technology startups are responsible for the largest number of job cuts across the country this year. New firms have laid off nearly 28,000 people this year, according to data from Longhouse Consulting.
Layoff rates have risen sharply from the previous two years, with just 4,080 laid off from these firms in 2021 and 20,000 in 2022. Most of the 28,000 were laid off within six months.
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