Looks like artificial intelligence performed even better than expected, so much so that it has rendered at least a thousand jobs at Paytm redundant. The digital-payments company had relied on AI to handle its repetitive tasks and take on all the monotonous and mundane work. The results were so good that the firm is now doing away with about 1000 people from its workforce, across various divisions!
Although the laid-off people also include non-performers, it is clear that the layoffs are a step towards cutting costs, and the impact has reportedly been felt the most by the marketing and operations teams.
The increasing reliance on AI is aimed at improving efficiency, getting rid of repetitive jobs and moving towards better growth.
The company is expected to save at least 10 per cent on employee costs by automating processes using AI.
However, these layoffs are not an indication of a hiring freeze going forward. In fact, the company is planning to hire about 15,000 people to be part of its main payments business in 2024. The firm also has plans to expand its insurance and wealth businesses.
One97 Communications is the parent company of Paytm. The company had recently decided to focus more on high-ticket loans and reduce small-ticket loans. This decision had led to the firm’s shares dropping by 20 per cent.