Paytm employs over a thousand people as it uses AI automation technologies

 Paytm employs over a thousand people as it uses AI automation technologies

Paytm employs over a thousand people as it uses AI automation technologies

For the last month, the corporation has been laying off employees as a result of AI automation and non-performance.

PayTm made the decision to let go of 500–700 workers in 2021 due to poor performance.

After using artificial intelligence (AI) to increase productivity, fintech giant Paytm let go of more over a thousand workers from its engineering, sales, and operations departments.

We are using AI-powered automation to automate repetitive processes and responsibilities in our operations to boost efficiency and save expenses. As a consequence, we are somewhat reducing the number of people working in operations and marketing. AI has performed better than we anticipated, thus we will be able to save ten to fifteen percent on personnel expenditures. Furthermore, we assess non-performance incidents all year round," a Paytm representative said. informed Moneycontrol.

It will make sense for us to extend our platform by keeping our attention on wealth, insurance, and established firms. We are extending our delivery-based business strategy to target new firms after demonstrating its effectiveness in loan disbursement. Are." Scale, a Paytm representative said.

PayTm made the decision to let go of 500–700 workers in 2021 due to poor performance.

The news was initially reported by The Economic Times.

Moneycontrol was informed by sources that the layoffs include a component of the loan team.

"Their lending business is going very strong, although the team they have hired is more than 30% of the total staff," said a source in the sector. They have stopped offering BNPL and small-ticket loan services. There is pressure on them to reduce expenses." want to stay anonymous

On December 7, the corporation said that it will be slowing down the amount of small-ticket postpaid loans while looking to increase the amount of higher-ticket personal and merchant loans. The brokerages were also not pleased with this move, which prompted them to lower their projected income for the firm.

During its analyst meeting, the business said that although their postpaid loans may be cut in half, revenue or margins would not be affected. According to the business, postpaid had the lowest take rate and would thus have the least effect on revenue.

On October 20, One97 Communications, the parent company of Paytm, a significant player in payments, announced consolidated revenue of Rs 2,519 crore for the second quarter ended in September 2023, up 32% from Rs 1,914 crore in the same period the previous year, mostly from payments. because of the advancement. An increase in the loan disbursements and processing margin.

The company's Q2FY24 loss was reported at Rs 292 crore, compared to Rs 571 crore in Q2FY23.

The second quarter's ESOP expenditures for the Noida-based business came to Rs 385 crore.