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Paytm lays off 1,000 employees in an effort to reduce employees expenditures by 15 %

(News Trust Of India) : As part of efforts to improve efficiency and lower expenses, Paytm has terminated the employment of numerous staff members. The business claims that the most recent reduction in workforce will allow Paytm to reduce labor expenditures by 15 per cent. Here is the information.

One 97 Communications, the parent company of Paytm, has recently terminated a large number of employees as part of an effort to streamline operations and decrease staff expenses by 15 percent. According to the Economic Times, about 1,000 staff from different divisions of Paytm have been let go. This project, carried out in recent months, has affected many departments like payments, lending, operations, and sales, impacting over 10 percent of Paytm’s total employees. The decision, founded in performance-related concerns, reflects the company’s intention to boost profitability.

A large number of organizations in the new economy sector, which comprises modern businesses utilizing advanced technology, have laid off more than 28,000 employees in the initial three quarters of this year. This indicates that these companies are experiencing financial challenges as it becomes more difficult for them to secure capital. Paytm, a major player in this industry, is also implementing adjustments that align with this pattern. They’ve opted to slash jobs, especially in their loan company, which increased a lot in the past year.

A spokesman from Paytm disputed with the number of job cutbacks claimed but affirmed that they are implementing these changes. The reported source added that the goal is to lower personnel costs by 10-15 percent in the current fiscal year. To lessen the impact on its workforce, Paytm is actively implementing AI-led automation to replace specific tasks, particularly in sectors affected by layoffs.

Concurrently, the corporation allegedly wants to boost its core payments business by employing around 15,000 personnel in the following year. The spokesman underscored Paytm’s commitment to developing new products within its wealth management vertical and extending its footprint in the insurance distribution sector, anticipating the creation of fresh job opportunities in these important areas.

As Paytm navigates these developments, the firm intends to strike a careful balance between cost minimization and growth, positioning itself for long-term viability in the dynamic financial services sector. It is still unknown whether the corporation additionally gave severance money to the employees who were laid off or the ones who would get dismissed shortly.