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HomeIndiaAI strikes down humans as Paytm sacks over 1,000 employees in the...

AI strikes down humans as Paytm sacks over 1,000 employees in the name of ‘efficiency’

Paytm has sacked greater than 1,000 staff as it’s “transforming” its operation with synthetic intelligence (AI)-powered automation to enhance effectivity.

One 97 Communications, mother or father of Paytm, mentioned the staff of a number of models together with operations, gross sales and engineering groups.

‘AI has delivered more than expected’

A report by Moneycontrol quoted Paytm spokesperson saying, “We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce in operations and marketing.”

‘Save 15% employee costs’

“We will be able to save 10-15 per cent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year,” Paytm’s spokesperson additional mentioned.

A report by Financial Occasions quoted an individual saying the job cuts in Paytm occurred over the previous couple of months.

The Paytm layoff is among the many steepest job cuts applied by an Indian new-age expertise firm in 2023.

Again in 2021, Paytm had determined to take away 500 to 700 staff primarily based on non-performance.

Layoffs a part of lending workforce

The Moneycontrol report quoted sources additional informing that the layoffs are a part of the lending workforce.

“Their lending business is going very strong, however the team size they employed within was more than 30 per cent of the total employees. They recently shut down small-ticket loans and BNPL services. There is pressure to cut costs,” the report talked about an trade supply as saying, requesting anonymity.

On 7 December, the corporate had introduced its plans to decelerate its small-ticket postpaid loans plan and needs to increase its high-ticket private loans and service provider loans. The choice of the agency didn’t go properly with brokerages as properly, prompting them to chop their income estimates for the corporate.

Shares of Paytm on the identical day took a serious hit, falling round 20 per cent.

With inputs from companies

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