Dec 25 2023, 09:46
Paytm fires over 1,000 across units amid cost- cutting:
One 97 Communications, parent of Paytm, has laid off more than 1,000 employees at multiple units, two people in the know told. The publicly listed financial services firm is looking to cut costs as it realigns its various businesses. The job cuts took place over the last few months, said one person.
The move is likely to affect at least 10% of the overall headcount and comes on the back of Paytm withdrawing from small-ticket consumer lending and the 'buy now pay later' segment, following a regulatory clampdown on unsecured loans by RBI.
This will be among the steepest job cuts implemented by an Indian new- age tech firm this year.
Under Paytm Postpaid, the Vijay Shekhar Sharma-founded company disbursed loans of under Rs 50,000. But with the regulatory landscape changing, it is now pushing aggressively into wealth management and insurance broking.
Paytm's stock hit the lower circuit, dropping 20%, on December 7, a day after the company said it will pull out from Paytm Postpaid and take a cautionary approach toward small- ticket loans going forward.
Responding to an emailed query, a Paytm spokesperson disputed the number of fired employees, but acknowledged layoffs, pointing out that it intends to save 10-15% of staff costs over the course of the current fiscal year. Most of the impacted roles have been replaced by artificial intelligence-led automation.
"Our core business of payment may see manpower increase by 15,000 in the coming year," the spokesperson said. "We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing."
New businesses:
Paytm is focusing on building new products for its wealth management vertical and setting up a strong insurance distribution business, one of the persons said. "There are certain new business developments that are being worked upon in broking (Paytm Money)," the person said. "It also plans to build an insurance distribution marketplace, so there is fresh talent being hired.
source:et
Dec 26 2023, 12:54