PayU axes nearly 150 employees as part of restructuring in India

Online payment services provider PayU has axed approximately 6% of its workforce in India, reported The Economic Times. 

The move, which impacts 150 employees, is part of the payment firm’s efforts to realign teams locally. 

A source familiar with the development told the publication that the layoffs are spread across various teams and mainly impact PayU India’s unit Wibmo. 

PayU acquired Wibmo, a digital payment security and mobile payment technology firm, for $70m in 2019. 

The Netherland-based firm’s other Indian fintech businesses include LazyPay and Citrus Pay. 

“Keeping in mind our highest strategic priorities, we are realigning teams across some businesses in India,” a PayU spokesperson said in a statement. 

“…we will have (to) part ways with some of our colleagues. Close to 150 employees, which is less than 6% of our total employee strength, will be impacted from organisational realignment.”

According to the representative, as PayU focuses on developing a full-stack digital financial services ecosystem in India, it was important to ensure that it had “the right structure and resources in place and is nimble enough to respond to a fast-evolving fintech market and seize the opportunities it presents.”

The firm, which is backed by Prosus, the investment arm of South African multinational Naspers, does not have any plans for “major downsizing”, the spokesperson noted. 

Earlier this month, PayU announced its expansion in the central American markets of Guatemala, Honduras, El Salvador and Costa Rica.