Paytm to cut jobs across units
Most of the roles have been impacted by AI-powered automation.
Paytm’s parent company One 97 Communications is in the process of cutting jobs from various departments.
The company, however, declined to specify a number.
's spokesperson told YourStory, "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. We will be able to save 10-15% in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year."
Media reports had earlier stated that the company is laying off over 1,000 employees.
The fintech giant is focusing on expanding its wealth management section and establishing a robust insurance distribution business.
"Our core business of payment may see manpower increase by 15,000 more in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India. In this, Insurance and Wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses. Having shown the strength of our distribution-based business model in loan distribution, we are expanding the same to focus on new businesses to drive scale," the spokesperson informed.
A few months ago, the company also announced that it has sharpened its focus on its AI capabilities and is building an Artificial General Intelligence software stack
“Paytm is investing in AI with an eye on building an Artificial General Intelligence software stack. We believe by building it in India we are not only making our country's tech capability but also creating something that could be leveraged outside India," said CEO Vijay Shekhar Sharma, in a letter to shareholders, in its Annual Report 2023.
(The story is updated after the company's response)