Paytm Lays Off Staff To Cuts Costs
In a letter to shareholders in May, Founder Vijay Shekhar Sharma had said Paytm's next milestone is to be free cash flow positive in the near future.
One97 Communications Ltd., the parent of fintech firm Paytm, is laying off employees to reduce costs as the company targets turning cash-flow positive.
The company's "AI-powered automation" to drive efficiency and eliminate "repetitive tasks and roles" will result in "a slight reduction in our workforce in operations and marketing", a Paytm spokesperson told NDTV Profit.
The spokesperson didn't reveal the number of people being laid off. The Economic Times earlier reported that the company has cut 1,000 jobs.
"We will be able to save 10-15% in employee costs as AI has delivered more than we expected it to," the spokesperson said. "Additionally, we constantly evaluate cases of non-performance throughout the year."
The spokesperson added that Paytm's core payments business "may see manpower increase by 15,000 more in the coming year".
Founder Vijay Shekhar Sharma, in a letter to shareholders in May, had said that Paytm's next milestone was to be free-cash-flow positive in the near future. With the advent of early-stage artificial general intelligence, he had said at the time, Paytm would see more opportunities to bring efficiencies to the business and AI-first offerings.
