So many employees became victims of retrenchment

According to an ET report, Paytm’s parent company One97 Communications has laid off more than 1000 employees this time. The ET report, quoting two sources related to the matter, has claimed that these layoffs have taken place within the last few months and employees of various units of Paytm have been victims. It is being told that Paytm has done this layoff to reduce its costs and to reorganize its various businesses.

Biggest layoff of Indian startup

In this layoff of Paytm, about 10 percent of its total workforce has been affected. This is considered to be one of the biggest layoffs ever in any Indian startup. 2023 has also not proved to be a good year for startup companies. This year, Indian startups laid off more than 28 thousand employees in the first three quarters.

Earlier in the year 2022, startup companies had laid off more than 20 thousand employees and in 2021, more than 4 thousand employees had been laid off. If we look at the fintech sector, Zestmoney is going to be closed by the end of this month.

Impact of RBI action

Talking about Paytm, the series of bad news is not stopping for it. Earlier, the Reserve Bank had imposed regulatory restrictions on unsecured loans, which also affected Paytm. After RBI action, Paytm decided to close small ticket consumer lending and buy now, pay later business. It is being said that employees of these two segments have been most affected by the latest layoffs.

Stock performance under pressure

The company is continuously struggling in the stock market also. Paytm shares have fallen by about 28 percent in the last one month. Its price is down by more than 23 percent in the last 6 months. In the beginning of the month of December, Paytm stock also had to face lower circuit of 20 percent. Now after the news of layoffs comes out, there is a possibility of further adverse impact on the shares.

The post Paytm Layoffs: Paytm fires over 1,000 employees across units first appeared on Rightsofemployees.com.

Edtech unicorn Physicswallah has fired around 120 employees on the basis of performance review. This is the first case of layoff in that company. Which has achieved the Unicorn tag last year. PW’s CHRO Satish Khengre said that we regularly assess the performance of the company in the mid-term and end-term period. In the cycle ending in October, less than 0.8% of our workforce i.e. 70 to 120 such people have been shown the door. The company has decided on layoffs to cut costs.

Retrenchment on one side, vacancy on the other side

While on one hand employees have been laid off in Physics (PW), on the other hand it has also been said that 1000 people will be hired in the coming time. The Chief Financial Officer has told Economic Times that the company is working on its growth plan in the next 6 months.

After which about 1000 people will be given jobs in the company. YouTuber Alakh Pandey founded the company in 2020. In this year 2023, the company has become a unicorn. PhysicsWala had raised $100 million from Westbridge Capital and GSV Ventures at a valuation of $1.1 billion.

Company’s revenue increased 10 times in FY22

The company’s operating revenue increased 10 times to Rs 232.5 crore in FY22. It generated a profit of around Rs 100 crore, making it the largest and only profitable edtech start-up in India. Physicswala’s standalone operational revenue jumped 9 times to Rs 232.48 crore. The move comes after the company in January this year said it planned to hire 2,500 employees across multiple roles in that quarter.

Many other companies also included in the list

This is not the first time that layoffs have taken place in a company related to the education field. In fact, before this, companies like Byju’s, Unacademy, Vedantu, Cuemath, and Teachmint have also done layoffs. These companies have laid off more than 10,000 employees in the last two years due to funding problems. Now the name of Physicswallah has also been included in this list.

The post Employees Job Cuts: This company has fired about 120 employees – Details Here first appeared on Rightsofemployees.com.