The company has already changed the Paytm app’s home screen and that the Paytm Payments Bank and Other group entities’ offerings have been separated.
Pic: Social Media
Paytm has sacked more than 1,000 employees as it is “transforming” its operation with artificial intelligence (AI)-powered automation to improve efficiency. To subscribe please click tau.id/2iy6f and access our live channel.
One 97 Communications, parent of Paytm, said the employees of multiple units including operations, sales and engineering teams in the ‘Pink Slip’ list.
DON’T MISS: 700 New Variant COVID Cases Registered
Paytm, under Vijay Shekhar Sharma’s leadership, has been using AI tools from Microsoft and Google to streamline its operations, reduce staffing needs, accelerate its product development, and improve efficiency.
Paytm spokesperson quoted, “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.”
He further stated that, “We will be able to save 10-15 per cent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year.”
On 7 December, the company had announced its plans to slow down its small-ticket postpaid loans plan and wants to expand its high-ticket personal loans and merchant loans.
The decision of the firm did not go well with brokerages as well, prompting them to cut their revenue estimates for the company. Stocks of Paytm on the same day took a major hit, falling around 20 per cent.
According to an official source, “Their lending business is going very strong, however the team size they employed within was more than 30 per cent of the total employees. They recently shut down small-ticket loans and BNPL services. There is pressure to cut costs,”
The Paytm layoff is among the steepest job cuts implemented by an Indian new-age technology company in 2023. Back in 2021, Paytm had decided to remove 500 to 700 employees based on non-performance.
