Paytm reduces operations and marketing workforce for AI

One97 Communications, Paytm's parent company has laid off over 1,000 employees across multiple units, as per a report by ET. The company has claimed that the impacted roles have been replaced by artificial intelligence-led automation.

This comes at a time when the company aims to cut costs and realign its various businesses. The report suggests that the layoffs are likely to affect at least 10% of the overall headcount, with Paytm's lending business to witness the bulk of job cuts after it expanded in a big way, last year.

It also mentions that the company has cut its workforce across marketing and operations. A Paytm spokesperson told ET that it intends to save 10-15% of staff costs over the current fiscal year. 

The spokesperson further continued, “We are transforming our operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce within operations and marketing.”

The company has highlighted that the core business of payment ‘may see an increase in manpower’ by 15,000 in the coming year.