Paytm Lays Off Employees to Embrace AI-Driven Efficiency
Paytm has initiated a workforce reduction affecting several hundred employees in its operations, sales, and engineering teams. While the company spokesperson refrained from specifying the exact number impacted, it was disclosed that the move is part of a broader strategy to embrace AI-powered automation for enhanced efficiency. The company is streamlining operations, leveraging artificial intelligence to eliminate repetitive tasks and roles. This transformation aims to achieve operational efficiency and cost-effectiveness, resulting in a modest reduction in the workforce.
The spokesperson emphasized that the adoption of AI has exceeded expectations, enabling the company to save 10-15 percent in employee costs. Additionally, Paytm maintains a continuous evaluation of non-performance cases throughout the year. In 2021, the company had previously laid off 500-700 employees based on non-performance criteria.
Regarding future plans, Paytm foresees logical expansions into insurance and wealth management, building upon its existing business focus. The company is extending its proven distribution-based business model, previously successful in loan distribution, to new areas for scaling its operations.
Paytm Founder and CEO Vijay Shekhar Sharma highlighted the company’s commitment to leveraging AI to revolutionize payments and financial services. The adoption of an AI-driven strategy has enabled workforce reductions while facilitating ongoing innovation tailored to the Indian market. The company remains confident in its mobile-first foundation and early AI adoption, aiming to gain a competitive edge. Paytm strives for EBITDA-level profitability, having generated free cash in the past two quarters, with a trajectory expected to continue.