Paytm fires over 1,000 employees

One97 Communications Ltd, the parent company of digital payments firm Paytm, has fired at least 1,000 employees across multiple divisions as the firm looks to cut down on employee costs.

One97 Communications Ltd, the parent company of digital payments firm Paytm, has fired at least 1,000 employees across multiple divisions as the firm looks to cut down on employee costs.

Commenting on reports of layoffs at the company, a Paytm spokesperson confirmed that there has indeed been a reduction in its workforce in the operations and marketing team. According to sources, Paytm started the process of layoffs as early as October.

The spokesperson highlighted that the company is aiming to transform its operations by incorporating artificial intelligence (AI) and eliminating “repetitive tasks and roles”.

"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,” a Paytm spokesperson told IndiaToday.in.

The spokesperson further highlighted that the company will be able to save 10-15 per cent on employee costs by using AI-powered automation.

“We will be able to save 10-15 per cent 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 added.

The company also highlighted that it plans to increase manpower by 15,000 in its core payments business 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," the company said, adding that it intends to expand business verticals like insurance and wealth.