Paytm, a leading fintech company has reportedly laid off hundreds of employees from its operations, engineering and sales team. The company implemented AI-powered automation which will be driving the forces behind the transformation of the workplace.
AI-driven efficiency gains
Paytm is purportedly aiming to leverage AI to streamline its operations, with a particular focus on eliminating repetitive roles and tasks. The spokesperson has further highlighted the intention to drive efficiency across both costs and growth, which is leading to a moderate reduction in the workforce within marketing and operations.
The move has been anticipated to result in a 10-15% reduction in employee costs.
Prior workforce adjustments and strategy
It is not the first time that Paytm has laid off the workforce. Back in 2021, the fintech major laid off around 500-700 employees based on non-performance criteria. The current move aligns with Paytm's broader strategy, which emphasizes the logical expansion of its platform into wealth management and insurance. The company witnesses this expansion as a continuation of its successful distribution-based business model.
AI-driven revolution in financial services
Vijay Shekhar Sharma, the Founder of Paytm further highlighted the company's commitment towards leveraging AI for revolutionizing payments and financial services.
The AI-driven strategy further aims to drive efficiently but to foster innovation in India's dynamic market as well. Paytm believes that its early adoption of AI and strong mobile-first foundation will position it competitively in the evolving fintech landscape.
EBITDA-level profitability
To achieve EBITDA-level profitability, Paytm has reportedly generated free cash for the past two quarters. The company's leadership further anticipates that this trajectory will persist, and further emphasizes the potential of AI-driven initiatives to contribute to sustained financial success.
After the news was rolledout, Paytm's spokesperson 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.*
The spokesperson further added, *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."
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Inputs from IANS
