- Paytm laid off over 1,000 employees, 3% of its workforce, to shift focus to AI and new initiatives.
- Paytm looks to lending and insurance to power the next stage of expansion.
- The job cuts signal difficult times ahead for India’s tech sector despite future plans.
Paytm cuts 1,000 employees
Indian financial services company Paytm laid off over 1,000 employees this week, equal to about 3% of its workforce, as it looks to trim costs and shift its focus to artificial intelligence.
In an email to employees, Paytm CEO Vijay Shekhar Sharma said the company is realigning resources to invest more aggressively into AI and new initiatives like lending and insurance.
“This strategic allocation of resources will strengthen our focus on driving enhanced technology-led lending and insurance services to take financial inclusion to the next level in India,” Sharma wrote.
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Workforce Downsizing
According to a Paytm spokesperson, the workforce reduction will help drive greater efficiencies within the company. Paytm expects to see cost savings of 10-15%.
The layoffs targeted Paytm’s operations, sales, and engineering divisions. Employees who are let go will receive severance packages and the opportunity to look for jobs within Paytm, the company said.
This round of layoffs comes just a month after Paytm’s parent company, One97 Communications Ltd., reported a 32% increase in quarterly revenue alongside slowing growth in its core payments business.
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Into the Next Stage
One97 is looking to AI and ancillary lending and insurance services to power Paytm’s next expansion stage.
“Lending and insurance will be a logical expansion of our platform,” the spokesperson said.
While necessary for the company’s future plans, the large-scale job cuts signal difficult times ahead for many in India’s tech sector.
