Paytm’s main company, One 97 Communications, has asked more than 1000 employees to leave.
A report in the Economic Times says this happened in different parts of the company because they are changing how they do business to save money.
This change has been going on for a few months, and it might affect around 10% of all the people who work there.
Paytm made this decision after they reduced offering small loans to customers and stopped the ‘buy now pay later’ service because of new rules from the RBI about unsecured loans.
People are talking about how many jobs were cut at Paytm, and it’s one of the biggest job cuts at a new Indian tech company this year.
Many other new companies had to let go of lots of employees because they didn’t have enough money, had to change how they do business, or needed to save money.
The news report mentioned information from a search company called Longhouse Consulting.
It said that new companies let go of more than 28,000 workers in the first nine months of 2023.
In 2022, they had to cut more than 20,000 jobs, and in 2021, they let go of more than 4,080 workers.
Will focus on big size loans
Paytm provides different kinds of loans, like personal loans, merchant loans, and Paytm postpaid.
In a meeting on December 6, Paytm mentioned to analysts that it will lessen its involvement in giving small postpaid loans.
Instead, it will concentrate more on larger loans ranging from Rs 3 to 7 lakh. Currently, under Paytm Postpaid, the company offers loans of less than Rs 50,000.
After this change, some analysts have lowered their opinion about Paytm’s shares or reduced its expected price.
