“Paytm Utilizes AI for Efficiency, Triggers Large-Scale Layoffs”
In a strategic move to leverage Artificial Intelligence (AI) for streamlining its operations and curbing expenses, Paytm, under its parent company One97 Communication, has initiated a significant downsizing effort, resulting in the termination of hundreds of employees across various departments, including sales and engineering.
In a strategic move to leverage Artificial Intelligence (AI) for streamlining its operations and curbing expenses, Paytm, under its parent company One97 Communication, has initiated a significant downsizing effort, resulting in the termination of hundreds of employees across various departments, including sales and engineering.
The induction of AI technology into Paytm’s operations aimed at automating processes, reducing costs, and enhancing operational efficiency. This shift intended to eliminate redundant tasks and roles, particularly in the fintech sector, while prioritizing the enhancement of the payment platform’s core business.
By integrating AI-powered automation, Paytm expects to achieve substantial savings, estimated at approximately 10-15 percent in employee costs, surpassing their initial projections. The move also aimed to enhance the company’s capacity to deliver services beyond expectations.
Vijay Shekhar Sharma, Paytm’s Founder and CEO, has been steering the tech, product, and engineering teams, leveraging AI tools from Microsoft Corp. and Google. This strategic move has remarkably expedited product development, reducing timelines from weeks to mere days.
Despite its focus on technological innovation and cost optimization, Paytm’s recent decisions have encountered some setbacks. In 2021, the firm terminated 500-700 employees based on performance issues. Additionally, the decision to decelerate small-ticket loans and prioritize high-ticket personal and merchant loans has received mixed reactions, prompting reductions in revenue estimates by various brokerages.
Despite challenges, Paytm remains resolute in its pursuit of growth. The company plans to expand its workforce by hiring over 15,000 contract salespeople to onboard more merchants onto its network. Simultaneously, it aims to bolster its salesforce to over 50,000 in the next fiscal year, focusing on engaging merchants in smaller Indian cities and towns.
Following a significant drop of approximately 70 percent in its valuation post its $2.5 billion Initial Public Offering (IPO), Paytm faces investor concerns. The company’s efforts to recover and reassure investors amidst these shifts remain pivotal.
As Paytm navigates these transitions and technological advancements, its strategic decisions continue to shape the future trajectory of the company in the dynamic landscape of the fintech industry.
Sources By Agencies
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