New Delhi. Paytm is once again in the center of discussion. According to media reports, Vijay Shekhar Sharma’s company Paytm has once again made layoffs. It is reported that 10 percent of Paytm’s employees will be affected by this retrenchment. According to the news of Economic Times, One97 Communications, the company running Paytm, has issued pink slips to more than 1000 employees. The newspaper, quoting sources, has claimed that these layoffs in Paytm took place in the last few months. The employees affected by retrenchment belong to different units of Paytm. According to the news, Paytm has laid off its employees due to cost cutting. Paytm is a fintech startup. The layoff here is being said to be the biggest layoff in any Indian startup.
Many startups opened in India during the Modi government, but most of them chose the path of laying off employees due to financial pressure. In the year 2021, Indian startup companies laid off more than 4000 employees. In 2022, more than 20,000 employees were laid off from startup companies. At the same time, more than 28,000 employees have been laid off in the three quarters of 2023. Recently, Reserve Bank of India had taken strict action against Paytm regarding unsecured loans. Paytm had stopped Buy Now Pay Later, Small Ticket Consumer Lending etc. after the move of the Reserve Bank. In the latest retrenchment in Paytm, the maximum number of employees are said to be from these two departments.
If we talk about the stock market, there has been a huge decline of 28 percent in the share price of Paytm in the last one month. This month i.e. in the first week of December, a lower circuit of 20 percent has been imposed on the shares of Paytm. In such a situation, there are full chances that the layoff of more than 1000 employees in the company will once again impact Paytm in the stock market. However, when Vijay Shekhar Sharma started Paytm and the IPO came, investors showed great enthusiasm to buy shares of the company.