Why Paytm fired over 1,000 employees? Know the key reasons
Vijay Shekhar Sharma-led fintech giant Paytm, the subsidiary of One 97 Communications, has undertaken a significant reduction in its workforce.
Over 1,000 employees across various departments have reportedly been laid off, impacting around 10% of the company's total workforce.
The layoffs have occurred over the past few months, affecting areas such as payments, lending, operations, and sales.
These layoffs is rooted in performance-related concerns and the company's goal to improve profitability.
The layoffs coincide with Paytm's withdrawal from small-ticket consumer lending and "buy now pay later" segments, following regulatory restrictions by the Reserve Bank of India (RBI). Despite a 32% growth in consolidated revenue, Paytm recorded a net loss in the recent fiscal quarter.
To mitigate the impact of these layoffs, Paytm said it is incorporating AI-led automation, particularly in roles affected by the layoffs.
“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,” said a company spokesperson.
The company believes it will be able to save 10-15% in employee costs as AI has delivered more than we expected it to.
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