---
title: "Indian Payment Gateway Paytm lay off its employees to save cost"  
description: "Paytm Cuts Over 1,000 Jobs in Cost-Cutting Restructuring"  
author: "Saumya Mishra"  
published: 2023-12-26  
updated: 2023-12-26  
canonical: https://www.mindstick.com/news/3666/indian-payment-gateway-paytm-lay-off-its-employees-to-save-cost  
category: "technology"  
tags: ["paytm", "upi payment system"]  
reading_time: 2 minutes  

---

# Indian Payment Gateway Paytm lay off its employees to save cost

Faced with financial challenges and a need to realign its business, [**Paytm**](https://yourviews.mindstick.com/view/84759/how-to-use-paytm-upi-lite-for-faster-payment)'s parent company, **One 97** [Communications](https://www.mindstick.com/articles/44489/leased-lines-and-other-tools-for-business-communications), has laid off over **1,000 employees** across various [departments](https://yourviews.mindstick.com/story/1782/important-ministries-and-departments-in-india). This move, impacting **10%** of the workforce, marks a significant shift for the Indian fintech giant.

- **1,000+ jobs cut across departments in ongoing [restructuring](https://www.mindstick.com/news/4616/microsoft-cuts-9-000-jobs-amid-restructuring-drive).**
- **Layoffs concentrated in the lending business, including Paytm Postpaid.**
- **Company pivoting away from small-ticket loans, focusing on wealth [management](https://www.mindstick.com/articles/23490/tips-for-better-cash-flow-management).**

**Restructuring and Job Cuts:** Paytm's layoffs come amidst a broader effort to restructure its business segments. The company is withdrawing from small-ticket consumer lending and its "buy now pay later" (BNPL) segment on the [**UPI**](https://yourviews.mindstick.com/view/84479/reasons-why-upi-payment-has-become-so-famous) platform. Sources indicate the majority of job cuts are concentrated in the lending business, particularly Paytm Postpaid, which offered loans under₹50,000.

**Shifting Focus:** Following the layoffs, Paytm Postpaid is reportedly shifting its focus towards wealth management. This move reflects a strategic change in response to financial challenges and the company's evolving priorities.

**Stock Slide:** Paytm's decision has not been without consequences. The company's stock faced a 20% decline on December 7th after the announcement of the Paytm Postpaid loan plan discontinuation.

**Startup [Layoff Trend](https://yourviews.mindstick.com/view/86197/linkedin-layoffs-it-s-employees-to-join-the-latest-layoff-trend):** Paytm's situation is part of a broader trend in the Indian startup ecosystem. Longhouse Consulting data reveals around 28,000 layoffs in new companies in 2023, a significant increase compared to [previous years](https://answers.mindstick.com/qa/114122/how-have-social-media-trends-evolved-in-2025-compared-to-previous-years). Other startups like [PhysicsWallah](https://yourviews.mindstick.com/view/tags/physics-wallah), Udaan, and Bizongo have also reported high layoff rates.

![Indian Payment Gateway Paytm lay off its employees to save cost](https://www.mindstick.com/usernews/655071/4ed83a86-30d5-4225-9788-c552661cfd6a/images/1a24db34-b26f-4999-9f5e-2ef3a88ca5a9.jpg)

**Looking Ahead:** Paytm's restructuring and layoffs mark a critical turning point for the company. While the immediate future remains uncertain, the company's pivot towards wealth management and focus on cost-cutting could pave the way for long-term [financial stability](https://answers.mindstick.com/qa/104667/how-to-assess-the-financial-stability-of-a-company-through-its-income-statement) and growth.

---

Original Source: https://www.mindstick.com/news/3666/indian-payment-gateway-paytm-lay-off-its-employees-to-save-cost

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