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Paytm, the financial technology giant under One97 Communication, will lay off “more than 1,000” jobs amid a major transformation, media reports say. The company's recent induction of Artificial Intelligence (AI) in its operations has reportedly led to hundreds of layoffs across various verticals, according to some market experts. This move is part of a broader strategy to automate processes and cut costs. Amidst these changes, Paytm's Founder and CEO, Vijay Shekhar Sharma, has outlined an ambitious to-do list for 2024, signaling a new direction for the company.
At the heart of Paytm's restructuring is the adoption of AI, which promises to streamline operations, reduce costs, and eliminate repetitive tasks. The company is leveraging AI tools from tech giants like Microsoft and Google, utilizing its 10,000-strong workforce in technology, product, and engineering. This shift is not just a cost-cutting measure but a strategic realignment to enhance product development timelines and improve the core business of payment processing.
Vijay Shekhar Sharma's to-do list includes a redesign of the Paytm app's home screen and a separation of the Paytm Payments Bank and other group entities to provide a cleaner, more user-friendly experience. This redesign is part of a larger plan to expand AI use in the company's operations, aiming to achieve a more efficient customer service model.
The induction of AI has led to a reduction in the workforce, particularly in operations and marketing. Paytm expects to save 10-15% in employee costs due to AI-driven efficiencies. However, the company also anticipates an increase in manpower in its core payment business, with plans to add 15,000 more employees in the coming year. This realignment reflects Paytm's focus on expanding into new business areas, including Insurance and Wealth, while continuing to strengthen its loan distribution model.