Paytm, Byju’s employees on a job hunt! Around 13,500 actively looking for new jobs amidst challenges | India Business News

Feb14,2024


Paytm, Byju's crisis: Around 13,500 employees of Byju's and Paytm, two leading Indian startups, are looking for new jobs due to growth. investor inquiry and regulatory barriers.
According to an ET report, staffing firm Xpheno has partnered with the well-known job board, which suggests that many professionals from Paytm and Byju's are actively looking for new jobs. Over 6,500 individuals from Paytm and around 7,000 individuals from Byju's are looking for new opportunities.
Byju's, previously India's most valuable startup, valued at $22 billion less than two years ago, has faced a number of challenges. These include financial issues, legal conflicts, low valuations and investors' calls for leadership change. As a result, there has been an increase in employee turnover due to layoffs and salary delays.
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The challenges for Paytm increased significantly when reserve Bank of India (RBI) ordered Paytm Payments Bank The order to close all banking services within a month increased uncertainties about the future of the company. On Monday, RBI Governor Shaktikanta Das said that there will be no immediate reconsideration of the restrictions imposed.

Paytm, Byju's employees looking for jobs!  Nearly 13,500 are actively looking for new jobs amid challenges

The challenging conditions at both companies have greatly affected employee morale, leading many to seek job opportunities elsewhere. Recent data shows that there has been a significant increase in the number of job seekers from both Byju's and Paytm, especially in the last two weeks.
An unnamed recruiter was quoted as saying that Byju's has come out of a period of success and is facing an existential crisis. Paytm, known for revolutionizing digital payments in India, is now facing uncertainty about its future. As a result, it makes sense that employees are actively looking for opportunities elsewhere.
Two months ago, Paytm had 800 to 1,200 active job seekers, but in the last two weeks, Xpheno data shows that nearly 5,000 more employees have joined the job search. More than 70% of the total active job seekers on Paytm have become active in the last 10 days.
Similarly, at Byju's, the number of active job seekers has increased to 3,000 from 2,000 two months ago. Recent data shows that an additional 5,000 workers have started looking for new opportunities in the last two weeks.
Despite more candidates available, job seekers face challenges due to slow hiring in the startup sector. Recruiters believe that although many candidates are ready for lower salaries, companies are being cautious in hiring due to the current economic uncertainties and margin pressure.
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“The current job market, with continued headwinds and macroeconomic uncertainties, is clearly tough for lateral and fresher talent seeking jobs,” said Prasad MS, Head of Workforce Research at Xpheno. He further added, “Margin pressure has led enterprises to adopt austerity measures and talent actions will remain conservative for a few more quarters.”
Furthermore, Prasad noted that both tech and non-tech startups have been demanding minimum hiring for more than five quarters. This trend also extends to edtech and fintech enterprises. He pointed out that challenges related to funding, governance and product relevance have worsened the situation for leading companies in these sectors.
An anonymous CEO of an edtech company revealed that he had received numerous resumes, a significant portion of which were from Byju's employees. However, the CEO stressed the importance of cost vigilance, saying companies are feeling pressure to demonstrate profitability.
In response to the query, Paytm reaffirmed its commitment to support its employees through internal job portals and continuous efforts towards financial inclusion. However, Byju's remained unresponsive at the time of publishing.
Responding to questions, Paytm emphasized its dedication towards empowering its employees. A company spokesperson said, “As a standard practice, we have an internal job portal where employees can look for opportunities within the Paytm ecosystem. While employees of any organization have the right to pursue their career goals, we are all working hard day and night to pursue our larger goal of financial inclusion. Our valuation cycle is also unaffected due to instructions from our associate bank.
More than three-fourth of Byju's and Paytm employees looking for new opportunities fall within the Rs 5-10 lakh salary range, according to Xpheno data. Additionally, employees with less than four years of experience constitute about 65% of the available talent pool at Byju's and about 42% at Paytm.



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