Paytm lays off 1,000 employees as it aims to save 15 percent of employee costs

In a significant move to optimize operations and reduce employee costs by 15 percent, Paytm’s parent company One97 Communications has laid off hundreds of employees. According to the Economic Times, more than 1,000 employees have been fired from various departments of Paytm. The initiative, implemented over the past few months, has impacted divisions such as payments, lending, operations and sales, affecting around 10 percent of Paytm’s total workforce. The decision, based on performance-related concerns, reflects the company’s goal of improving profitability.

Many companies in the new economy sector, which include modern businesses that use advanced technology, have laid off more than 28,000 workers in the first three quarters of this year. This shows that these companies are facing financial difficulties as it is difficult for them to obtain funding. Paytm, a big company in this sector, is also making changes following this trend. They have decided to cut jobs, especially in their lending business, which has grown significantly in the last year.

A Paytm spokesperson disagreed with the number of reported job cuts but confirmed that they are making these changes. The quoted source said the target is to reduce employee costs by 10-15 percent in the current financial year. To mitigate the impact on its workforce, Paytm is actively incorporating AI-based automation to replace some roles, especially in areas affected by layoffs.