Thursday, June 20, 2024

Paytm implements AI automation, lays off 1000 employees

The parent company of Paytm, One 97 Communications, has reportedly laid off over 1,000 employees across various departments as part of a strategic move to streamline operations and reduce expenses. The company is undergoing a transformation with AI-powered automation, anticipating savings of 10-15% in employee costs beyond expectations.

According to The Economic Times, these layoffs, occurring over the past few months, mark one of the most significant downsizings in the workforce of an Indian tech company this year. The reductions, impacting over 10% of Paytm’s total employees, coincide with recent decisions such as discontinuing small-ticket consumer lending and halting the “buy now pay later” lending segment on the UPI platform.

A Paytm spokesperson stated, “We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles. We will be able to save 10-15% in employee costs as AI has delivered more than we expected it to.” Despite the reduction, Paytm plans to increase manpower in its core payment business by 15,000 in the coming year. The company remains focused on innovation, especially in areas like insurance and wealth, as part of its expansion strategy.

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