In a strategic move to streamline operations and reduce employee costs, One97 Communications Ltd, the parent company of Paytm, has embarked on a workforce restructuring that has resulted in around 1,000 layoffs across various divisions. The restructuring process, which began in early October, primarily targets roles in operations and marketing.

Harnessing AI for operational efficiency

Confirming the layoffs, a PTM spokesperson emphasized the company's commitment to use artificial intelligence (AI) to streamline operations and eliminate repetitive tasks and roles. AI-powered automation is expected to increase implementation efficiency and contribute to a 10-15% reduction in employee costs.

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"We are transforming our processes with AI-powered automation to increase efficiency, eliminate repetitive tasks and roles to increase efficiency and increase efficiency in costs, resulting in our workforce in operations and marketing. A slight decrease,” said a Paytm spokesperson.

Strategic focus on growth and innovation

Despite the reduction in some roles, Paytm is actively pursuing growth and innovation. The company plans to strengthen its core payments business by hiring an additional 15,000 employees in the coming year. With a strong foothold in the payments platform and a proven profitable business model, Paytm remains committed to innovation and expansion, particularly in business verticals such as insurance and wealth management.

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"While improving our existing operations, we remain dedicated to employing fresh talent to drive growth in new business segments," the company confirmed.

Industry trends and references

The decision to integrate AI and optimize the workforce coincides with industry trends where many new-age companies are taking similar steps to increase efficiency and reduce costs. In particular, a significant number of employees in the sector of new age financial companies have experienced job losses in the first three quarters of the current year.

This move by Paytm follows its recent announcement to scale back on small-ticket loans under its Paytm Postpaid Buy Now Pay Later (BNPL) offering, instead of focusing on high-ticket loans. The strategic shift led to a sharp drop of 20 percent in the company's shares, reflecting concerns raised by many brokers about the potential negative impact of the decision.

As Paytm embarks on this transformational journey, embracing AI and aligning its workforce with strategic objectives, the company is poised for continuous innovation and growth in India's competitive digital payments landscape.

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