New Delhi: One97 Communications Ltd, the parent company of digital payments firm Paytm, has laid off at least 1,000 employees across various divisions as part of a cost-cutting measure. Confirming the layoffs, a Paytm spokesperson stated that the reduction primarily affected the operations and marketing teams and was initiated in October. The company aims to streamline its operations through the integration of artificial intelligence (AI), focusing on automating repetitive tasks and roles.
"We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce in operations and marketing,” explained the Paytm spokesperson. The move is expected to save 10-15% in employee costs, surpassing initial expectations from AI implementation.
Despite the layoffs, Paytm plans to increase its workforce by 15,000 in its core payments business in the upcoming year. The company emphasizes its dominant position in the payments platform and a profitable business model while committing to ongoing innovation for India. Paytm aims to expand into business verticals such as insurance and wealth.
The layoffs at Paytm reflect a broader trend in new-age companies adopting AI-powered technologies to optimize tasks and reduce costs. Similar measures have been observed in various segments, including the financial industry, resulting in job losses. Paytm's recent decision to scale back on small-ticket loans under its Buy Now, Pay Later (BNPL) offering, Paytm Postpaid, has also impacted its share prices, leading to a 20% decline following negative assessments by multiple brokerages.
Ashok Gehlot Raises Concerns Over Delay in Cabinet Formation in BJP-Led Rajasthan
PM Modi Connects with J&K Students, Encourages Contribution to National Development
Bihar CM Nitish Kumar Dismisses Reports of Unhappiness, Backs Kharge for PM