One 97 Communications, the parent company of Paytm, has taken a significant step toward streamlining its operations and reducing staff costs by 15 percent. The move involved the dismissal of hundreds of employees, totaling more than 1,000 individuals across various departments within Paytm. Economic Times reported this measure, indicating that the company’s initiative, executed gradually over recent months, impacted divisions such as payments, lending, operations, and sales. Approximately 10 percent of Paytm’s total workforce bore the brunt of this decision, attributed primarily to performance-related concerns. The overarching aim behind this action is to enhance the company’s profitability.
Within the contemporary business landscape, several enterprises operating in the new economy sector—comprising technologically advanced firms—have collectively parted ways with over 28,000 employees during the initial three quarters of this year. This trend underscores the financial challenges faced by these companies, primarily due to increased difficulty in securing funding. Reflecting this broader trend, Paytm, a significant player in this sector, has also adopted measures aligned with this pattern. Notably, the company has opted to trim its workforce, especially within its burgeoning lending business, which had experienced substantial growth in the preceding year.
While a Paytm spokesperson contested the reported number of job cuts, they acknowledged the ongoing changes within the company. The source cited a primary objective of reducing staff costs by 10-15 percent in the current fiscal year. To mitigate the impact on its workforce, Paytm is actively integrating AI-driven automation to supplant certain roles, particularly those affected by the layoffs.
Simultaneously, reports suggest that the company intends to fortify its core payments business by recruiting around 15,000 employees in the upcoming year. The spokesperson stressed Paytm’s dedication to developing novel products within its wealth management segment and expanding its footprint in the insurance distribution domain. This strategic focus anticipates the creation of fresh employment opportunities in these specific areas.