Paytm Stock Declines Following Layoff Of More Than 1,000 Employees
Shares of Paytm, backed by Vijay Shekhar Sharma, experienced a decline today, dropping as much as 1.80 per cent to reach an intraday low of Rs 630.30. This decline came in the wake of the company's announcement regarding the layoff of over 1,000 employees across its engineering, operations and sales divisions. The move aims to integrate AI technology to enhance efficiency, a step in line with the firm's cost-cutting strategy.
The Noida-based company's decision to downsize was primarily driven by its intent to implement cost-saving initiatives. Paytm is restructuring its operations by leveraging AI-driven automation to streamline tasks and roles, aiming to reduce employee costs by 10-15 per cent, as stated by a company spokesperson.
According to its annual report for the fiscal year ending March 2023, Paytm maintained an average of 32,798 direct employees and 1,589 contractual employees worldwide across its diverse units.
In the quarter ending September, Paytm witnessed a reduction in losses, down to Rs 290 crore from Rs 571 crore in the corresponding quarter the previous year. Despite this, the company observed a notable 32 per cent increase in revenue from operations during the second quarter this year, amounting to Rs 2,519 crore compared to Rs 1,914 crore in the same period last year.
By midday, Paytm shares were trading 1.12 per cent lower at Rs 634.70.
