Paytm Fires Over 1,000 Employees, Aims To ‘Save 15% Staff Expenses’

In a strategic effort to enhance operational efficiency and slash personnel expenses by 15 percent, One 97 Communications, the parent company of Paytm, has implemented a workforce reduction, resulting in the termination of hundreds of employees.

According to reports from the Economic Times, over 1,000 employees spanning various departments at Paytm have been affected by this initiative, which unfolded over the past several months.

Notably, this move has impacted divisions such as payments, lending, operations, and sales, affecting approximately 10 percent of Paytm’s total workforce. The decision, grounded in performance-related considerations, underscores the company’s commitment to bolstering profitability.

While a Paytm spokesperson disputed the reported number of job cuts, they did confirm the ongoing restructuring efforts. The stated objective is to achieve a 10-15 percent reduction in staff costs for the current fiscal year.

To mitigate the impact on its workforce, Paytm is actively integrating AI-led automation to replace certain roles, particularly in areas affected by layoffs.

Simultaneously, the company is reportedly planning to fortify its core payments business by hiring around 15,000 employees in the upcoming year.

The spokesperson emphasized Paytm’s dedication to innovating new products within its wealth management vertical and expanding its footprint in the insurance distribution business, foreseeing the creation of fresh employment opportunities in these strategic domains.