One97 Communications Ltd, the parent company of digital payments firm Paytm, has initiated layoffs affecting more than 1,000 employees across various divisions in an effort to streamline and reduce operational costs.
Commenting on the workforce reduction, a Paytm spokesperson confirmed that the downsizing primarily targeted the operations and marketing teams and commenced as early as October.
AI Revolutionizes Roles at Paytm
The spokesperson emphasized the company's commitment to operational transformation through the integration of artificial intelligence (AI), aiming to eliminate repetitive tasks and positions.
"We are leveraging AI-powered automation to enhance efficiency, phasing out repetitive roles in operations and marketing," stated the Paytm spokesperson.
The spokesperson highlighted the substantial success of AI, surpassing initial expectations, leading to a 10-15 per cent reduction in employee costs. Additionally, ongoing assessments of performance throughout the year contribute to this strategic decision.
Continuing Recruitment Efforts
Despite the layoffs, Paytm plans to bolster its workforce by hiring 15,000 employees in its core payments business in the upcoming year. The company asserts its dominant position in the payments platform while expressing intentions to innovate and expand into areas such as insurance and wealth.
While trimming redundant roles and addressing non-performance issues, Paytm remains committed to recruiting fresh talent to foster growth in emerging business segments.
It's worth noting that Paytm's workforce adjustments align with a broader trend seen in various new-age companies, where measures like layoffs and AI adoption are taken to enhance efficiency, cut costs, and optimize tasks. The financial technology sector, in particular, has witnessed a notable number of job cuts in the first three quarters of the current year.
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