Paytm Implements Workforce Reductions Through AI-Driven Automation

Reports confirm that Paytm, a leading fintech entity, has undertaken substantial layoffs affecting numerous employees within its operations, sales, and engineering departments.
Paytm digital payment IndiaWhile specifics regarding the number of impacted individuals remain undisclosed by a company representative, it was communicated that Paytm is undergoing a strategic overhaul in its operations.

This transformation involves the integration of AI-powered automation aimed at enhancing efficiency by streamlining repetitive tasks and roles across growth and cost sectors. Consequently, this initiative has resulted in a marginal reduction in the company’s workforce particularly in operations and marketing domains.

A spokesperson emphasized the positive impact of AI implementation, citing an expected 10-15 percent reduction in employee costs due to the efficiency gains achieved through AI-driven processes. Additionally, the company has reiterated its continuous evaluation of performance throughout the year, implying that non-performance remains a determinant factor in workforce management.

This recent move echoes a similar trend in 2021 when the fintech major had laid off 500-700 employees on the grounds of non-performance.

Speaking on the company’s strategic direction, the spokesperson highlighted future expansions into insurance and wealth segments while maintaining focus on existing business domains. The company aims to replicate the successful distribution-based model employed in loan distribution into newer business areas to facilitate scale and growth.

Vijay Shekhar Sharma, Founder and CEO of Paytm, emphasized the company’s commitment to leveraging AI to transform payment and financial service landscapes in an interview with Bloomberg. The integration of AI strategies has enabled the reduction of the workforce while sustaining innovation within India.

Asserting its mobile-first foundation and early AI adoption as competitive advantages, Paytm aims for EBITDA-level profitability at an accelerated pace. Notably, the company has generated free cash flow for two consecutive quarters, and Sharma anticipates this positive trajectory to persist in the future.

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