Paytm laid off more than 1,000 employees: Decision taken due to cost cutting, company realigning business

Paytm’s parent company ‘One 97 Communications Limited’ has fired more than 1,000 employees. In the last few months, the company has made layoffs in different units. Economics Times has given this information in one of its reports.

According to the report, the company has fired employees to cut costs and is realigning its various businesses. The layoffs are estimated to affect at least 10% of One 97 Communications’ total workforce.

Paytm is one of the tech firms making the most layoffs

According to the report, the layoff in Paytm is one of the biggest layoffs made by an Indian new age tech firm this year. This year, the maximum number of employees were laid off from startups. The main reasons for this were lack of funding, restructuring of business, cost cutting and others.

Paytm will cut staff costs by 10% to 15%

Acknowledging the layoffs, a company spokesperson said, ‘Paytm will cut 10%-15% staff costs during the current financial year. Roles involving Artificial Intelligence based automation will be most affected by this. However, a company spokesperson disagreed on the number of employees laid off.

Paytm will offer personal loan and merchant loan

Recently Paytm has announced to change the strategy of loan business. On December 6, the company said that for this it will offer large size personal loans and merchant loans in collaboration with big banks and NBFCs. In this, lower risk and high credit worthy customers will be targeted.

It will reduce loan distribution for ticket size less than Rs 50,000. NBFC, i.e. Non Banking Financial Companies, are companies that provide various banking services but do not have a banking license. According to the company’s website, it has NBFC partners like Aditya Birla Capital, Hero Fincorp, Tata Capital and Fibe for loan distribution. They are also in the process of integrating a big bank.