Paytm’s parent company, One97 Communication, has laid off more than 100 employees across the verticals due to the company’s AI implementation and cost-cutting. After the layoff, Paytm’s CEO and Founder, Vijay Shekhar, created a to-do list of some changes to the firm for 2024.
In a post, he wrote, “Paytm app’s home screen and Paytm Payments Bank and other entities will be separated to make it look cleaner. Apart from the change in the app’s user experience, the expansion of AI in the firm’s operations is a part of the CEO’s goal for 2024. The induction of Artificial Intelligence and its expansion has been a priority for Mr Sharma, and the firm is pushing 10,000 strong technology, product, and engineering teams to use Microsoft and Google’s AI tools.”
Paytm said, “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 over some time. We will be able to save 10-15 percent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year.”
The firm said, “Our core business of payment may see manpower increase by 15,000 more in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India. In this, Insurance and Wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses. Having shown the strength of our distribution-based business model in loan distribution, we are expanding the same to focus on new businesses to drive scale.”