Paytm Shares Fall as Fintech Major Implements AI Technology and Lays Off Over 1,000 Employees
- ByStartupStory | December 27, 2023
On December 26, Paytm witnessed a nearly 1 percent decline in its shares after the fintech major announced the layoff of over 1,000 employees from its operations, sales, and engineering teams. The decision comes as Paytm aims to enhance efficiency through the implementation of AI technology.
According to a company spokesperson, Paytm is undergoing a transformation in its operations by leveraging AI-powered automation. This move is intended to drive efficiency by eliminating repetitive tasks and roles, resulting in a slight reduction in the workforce within operations and marketing.
The layoffs primarily affect the lending team, as per sources cited by Moneycontrol. At 9:17 am, Paytm shares were trading half a percent lower at Rs 638.95 on the National Stock Exchange (NSE).
In a statement to Moneycontrol, the Paytm spokesperson stated, “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 spokesperson also highlighted that the company’s focus on existing businesses will continue, with plans for logical expansions into insurance and wealth management.
The decision to implement AI technology and streamline operations reflects Paytm’s commitment to enhancing efficiency and optimizing costs. While these changes have led to a reduction in the workforce, the company remains focused on leveraging technology to drive growth and innovation in its core businesses.
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