*Headline: Paytm Implements Workforce Reduction Through AI-Powered Automation* Dec 25: In a strategic move, fintech leader Paytm has reportedly laid off several hundred employees from its operations, sales, and engineering teams.
While the exact number of affected individuals remains undisclosed, a company spokesperson explained that the initiative is part of their ongoing transformation, leveraging AI-powered automation to enhance efficiency by eliminating repetitive tasks and roles.
The spokesperson stated, “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.” This move follows a similar trend in 2021 when Paytm laid off 500-700 employees based on non-performance.
The company plans to focus on insurance and wealth as logical expansions of its platform. Emphasizing the strength of their distribution-based business model, particularly in loan distribution, Paytm aims to drive scale in new ventures. Paytm Founder and CEO Vijay Shekhar Sharma highlighted the company’s reliance on AI to revolutionize payments and financial services.
The adoption of AI-driven strategies has enabled Paytm to reduce its workforce while continuing to innovate in the Indian market. “As we lead the AI revolution in India, we are embracing AI-powered automation to eliminate repetitive tasks leading to substantial cost savings.
With an aim to drive efficiency across growth and costs, we are reducing our workforce by 10 per cent and continue to drive innovation in India across payments and financial services,” remarked a Paytm spokesperson.
Despite the reduction in workforce, Paytm remains confident in its mobile-first foundation and early AI adoption, considering it a competitive advantage. The company aims for EBITDA-level profitability sooner, having generated free cash for the past two quarters, with expectations for this trend to persist.
