Leading fintech company Paytm has reportedly laid off a significant number of employees from its operations, sales, and engineering teams as part of its strategy to implement AI-powered automation. While the company did not disclose the exact number of affected individuals, a spokesperson mentioned that the move is aimed at transforming operations, driving efficiency, and eliminating repetitive tasks and roles.
The spokesperson explained, '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.' The company anticipates saving 10-15% in employee costs through the implementation of AI, which has exceeded expectations in terms of performance.
This move follows the company's decision in 2021 to lay off 500-700 employees based on non-performance. Paytm is strategically expanding into insurance and wealth management as part of its broader business model, leveraging its distribution strength. The spokesperson emphasized, 'Insurance and wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses.'
Paytm Founder and CEO Vijay Shekhar Sharma highlighted the company's commitment to AI-driven innovation in payments and financial services during an interview with Bloomberg. The company believes that its early adoption of AI and mobile-first approach will contribute to maintaining a competitive edge, aiming for EBITDA-level profitability in the near future.
The spokesperson stated, 'As we lead the AI revolution in India, we are embracing AI-powered automation to eliminate repetitive tasks leading to substantial cost savings. With an aim to drive efficiency across growth and costs, we are reducing our workforce by 10 per cent and continue to drive innovation in India across payments and financial services.