New Delhi :
As 2023 draws to a close, the tech and fintech sector faces a tumultuous period marked by major layoffs.
Joining the ranks of companies taking drastic measures is Paytm, which has delivered a substantial blow to its workforce, letting go of over 1,000 employees just before the dawn of the new year.
The move is seen as part of the company’s broader reorganization efforts aimed at cost reduction.
Paytm’s Strategic Reorganization
According to reports from The Economic Times, Paytm, owned by One 97 Communications, is undergoing a comprehensive restructuring across its business verticals, resulting in layoffs to streamline costs.
Sources suggest that this recent downsizing might not be the last, hinting at potential future job cuts within Paytm.
This development follows a series of layoffs in various units over the past few months.
A 10% Workforce Reduction
The layoffs at Paytm account for approximately 10% of the company’s total workforce, marking one of the most substantial layoffs witnessed in the fintech industry in 2023.
While the company has not released an official statement,
reports indicate that a significant portion of the affected employees belong to the loan business unit.
Paytm Shifts Focus to Larger Loans
In tandem with the layoffs, Paytm has altered its approach to personal loans under the Buy Now Pay Later (BNPL) service.
Formerly offering small loans, Paytm has shifted its focus to larger loans, impacting the services provided to users.
This strategic shift is expected to impact a significant number of individuals relying on the company’s small loan facilities.
The unfolding developments at Paytm serve as a reminder of the challenges faced by major players in the tech industry,
prompting questions about the future landscape of fintech in the upcoming year.
