Paytm’s Christmas Gift To Employees: AI Automation Axes 1000 Jobs; Internet Erupts

In the past couple of months, there has been major downsizing across the tech industry by many companies. Now, fintech major Paytm has also laid off over 1000 employees from its operations, sales and engineering teams to cut costs. Another report has revealed that the lay offs come after the firm implemented a slew of AI technology to improve efficiency or automation.

The company spokesperson was quoted by Moneycontrol talking about the same. Shedding light on the implemented AI tech and more they said, “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, ” Paytm’s spokesperson told the portal.

According to reports, the company will be expanding into ‘Insurance and Wealth’ along with a focus on their existing businesses. The spokesperson added, “Having shown the strength of our distribution-based business model in loan distribution, we are expanding to focus on new businesses to drive scale.” This is not the first time the company has opted for layoffs. Back in 2021, PayTm decided to let go of 500 to 700 employees based on non-performance.

SEE ALSO: Google Might Lay Off 30,000 Employees Due To AI; Report Offers Alarming Insights

With 1000 employees in 2023, the company has currently laid off about 10% of their workforce alone this year. While people are not happy about the move, many are worried about what it would mean for the sector as well as the employees of other fintech companies.

According to reports, Brokerages aren’t happy with the changes Paytm is making. Earlier on December 7th, the company also announced plans to expand its high-ticket personal loans and merchant loans instead of focusing on small-ticket personal loans.

Meanwhile, weeks ago the company also announced plans to recruit over 50,000 individuals across sales to bring in greater number of merchants in smaller cities and towns. The founder and CEO Sharma was quoted by Bloomberg saying, “We have learned and we will amplify our ability to serve India, its small merchants, and businesses. We should be crossing about 50 million merchant-base signed up on the Paytm platform in the year.”

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