The parent company of Paytm, One 97 Communications, has terminated hundreds of employees to optimize operations and cut labor costs by 15%. According to Economic Times, Paytm has laid off around 1,000 workers across a number of departments.
Approximately 10% of Paytm’s workforce has been affected by this strategy, which has been implemented over the previous few months and has affected areas like payments, lending, operations, and sales. The decision, which sprang from issues with performance, makes the company’s objective of increasing profitability clear.
Over 28,000 workers were let go of by numerous firms in the new economy sector in the first three quarters of this year. This sector comprises contemporary organizations that use cutting-edge technology. The fact that it is more difficult for these businesses to obtain capital indicates that they are having financial troubles.
A significant player in this market, Paytm, is also following the trend. They made the decision to reduce staff, particularly in their loan division, which grew a lot in the previous year.
A spokesperson from Paytm disagreed with the number of job cuts reported but confirmed that they are making these changes. The cited source said that the goal is to reduce staff costs by 10-15 percent in the current fiscal year. To mitigate the impact on its workforce, Paytm is actively incorporating AI-led automation to replace certain roles, particularly in areas affected by layoffs.
Paytm is trying to find a fine balance between growth and cost reduction as it makes its way through these upheavals and positions itself for long-term viability in the fast-paced financial services industry. It is still unknown if the corporation paid severance benefits to workers who were let go or who would soon be sacked.