Work Cut: Exciting announcement! As of right present, this firm has let go of 10% of its workforce; specifics

 Work Cut: Exciting announcement! As of right present, this firm has let go of 10% of its workforce; specifics

Work Cut: Exciting announcement! As of right present, this firm has let go of 10% of its workforce; specifics

Job slash: Apparently, the fintech business has decided to slash costs by firing a significant number of staff once again.

Paytm, a fintech firm, is making headlines once again but not for good reasons. According to sources, Paytm has chosen to fire staff members from the firm once again. In this round of layoffs, Paytm reportedly let go of almost 10% of its whole workforce.

Too many workers suffered from layoffs.

This time, One97 Communications, the parent firm of Paytm, reportedly let go of over a thousand workers, according to an ET report. According to the ET story, which cited two relevant sources, these layoffs occurred over the previous several months, affecting workers from different Paytm divisions. Paytm reportedly carried out this layoff in order to lower expenses and restructure its many companies.

The largest layoff at an Indian startup

Approximately 10% of Paytm's staff has been impacted by this layoff. This is regarded as one of the largest layoffs that have ever occurred in an Indian company. Additionally, 2023 has not shown to be a favorable year for new businesses. Over 28,000 workers were let go by Indian startups in the first three quarters of this year. More than 20,000 workers were let go by startup businesses earlier in 2022, while over 4,000 people were let go in 2021. Zestmoney, a fintech company, is set to shut down by the end of this month.

Effect of the RBI's action

When it comes to Paytm, the negative news keeps coming. Paytm was impacted by previous regulatory limitations on unsecured loans that the Reserve Bank had put in place. Paytm made the decision to discontinue small-ticket consumer lending and purchase now, pay later operations after RBI action. It's been reported that the most recent layoffs have impacted workers in these two categories.

Performance of stocks under stress

The business consistently faces difficulties on the stock market as well. The previous month has seen a roughly 28% decline in Paytm shares. In the last six months, its price has decreased by almost 23%. Paytm stock had to deal with a 20 percent reduction in trading at the start of December. There may be further negative effects on the shares now that the layoff news has surfaced.