Paytm Cuts 10% Of Staff, More Than 1,000 Jobs Affected: Report

One97 Communications, the parent company of Paytm, reportedly underwent workforce reductions across various units, although the exact number of employees affected was disputed. This move aligns with the company's efforts to streamline operations and reduce costs. Over the past few months, a significant percentage - likely around 10 per cent - of Paytm's workforce faced job cuts, particularly within its lending division, which had seen substantial expansion in recent times.

While a company spokesperson contested the reported number of job losses, they did confirm the layoffs and mentioned the intention to trim staff costs by 10-15 per cent during the current fiscal year. The replacements for many of the affected roles involve AI-driven automation to enhance efficiency. Paytm aims to bolster its core payment business by increasing manpower by 15,000 in the upcoming year. This move towards AI-led automation aims to eliminate repetitive tasks, resulting in a reduction in the workforce across operational and marketing areas.

The focus for Paytm now lies in developing new products for its wealth management sector and establishing an insurance distribution marketplace, necessitating new talent recruitment, while other departments face downsising. The company aims to achieve the targeted reduction in employee costs by the fiscal year's end through these strategic shifts.