Paytm lays off over 1,000 employees, impacting 10% of its headcount: Report

Paytm parent, One97 Communications, has reportedly laid off more than 1,000 employees at multiple units. While Paytm disputed the number of employees who were laid off, it agreed that the company cut jobs.

According to a report in the Economic Times, the layoffs come as the listed company aims to cut costs as it realigns its various businesses. The daily, quoting a source, stated that the layoffs at Paytm took over the last few months.

The layoffs at Vijay Shekhar Sharma-founded Paytm are likely to affect at least 10 per cent of the overall headcount, and is believed to be among the steepest job cuts by an Indian new-age tech firm this year.

Paytm’s lending business is believed to have seen the bulk of the job cuts after it expanded in a big way over the last year or so.

A company spokesperson, who disputed the number of fired employees, acknowledged the layoffs and said that Paytm intends to save 10-15 per cent of staff costs over the course of the current fiscal year. Most of the impacted roles have been replaced by artificial intelligence-led automation.

Paytm’s core business of payment may see manpower increase by 15,000 in the coming year, the spokesperson pointed out. The spokesperson said that Paytm is transforming its operations with AI-powered automation, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a cut in the workforce across operations and marketing.

The report said that Paytm is now focussing on building new products for its wealth management vertical. It plans to build an insurance distribution marketplace too leading to the hiring of new talent, while other teams are being cut down.

A person in the know said that by the end of the fiscal year, Paytm intends to achieve the targeted 10-15 per cent reduction in employee costs.

Also read: ‘AI delivered more than expected’: Paytm CEO Vijay Shekhar Sharma says Google, Microsoft AI tools helped saving employee costs