Paytm lays off 1,000 employees, aims to save 15% of staff costs: Report
Paytm has fired 10 percent of its workforce to save costs. The company said this will help reduce staff costs by 10-15 percent. Paytm is actively incorporating AI-led automation to replace certain roles.
The parent company of Paytm, One 97 Communications, has made a major decision to streamline operations and cut labour expenses by 15% by terminating hundreds of workers. According to Economic Times, Paytm has laid off around 1,000 workers across a number of divisions.
Approximately 10% of Paytm's staff has been touched by this strategy, which has been implemented over the previous several months and has affected areas including payments, loans, operations, and sales. The decision, which sprang from issues with performance, makes the company's objective of increasing profitability clear.
Paytm declared earlier this month its intention to reduce the scale of its BNPL offering, Paytm Postpaid. The company expressed a cautious approach toward small-ticket loans in the future, emphasising a shift to concentrate on larger-sized personal loans and merchant loans.
Paytm is trying to find a fine balance between growth and cost reduction as it makes its way through these upheavals and positions itself for long-term viability in the fast-paced financial services industry. It is still unknown if the corporation paid severance benefits to workers who were let go or who would shortly be sacked.
Only a week ago, the premier payment company in the country announced plans to recruit over 50,000 individuals in sales. The objective is to onboard a greater number of merchants in smaller cities and towns as part of an overhaul of its array of money management products.
Many companies in the new economy sector, which includes modern businesses using advanced technology, have let go of over 28,000 employees in the first three quarters of this year. This shows that these companies are facing financial difficulties because it's harder for them to get funding. Paytm, a big company in this sector, is also making changes that follow this trend.