Paytm Embraces AI Transformation: 1,000 Employees Let Go in Cost-Cutting Move
Mumbai: Paytm’s parent company, One 97 Communications, has laid off approximately 1,000 employees across various departments in the last three months. The decision, reported by The Economic Times, reflects the company’s strategic effort to streamline operations and cut costs through the integration of AI.
The layoffs come as part of a broader initiative by Paytm to undergo a transformative phase, leveraging AI-powered automation to enhance operational efficiency. The company aims to eliminate repetitive tasks and roles, embracing the capabilities of AI to optimize both growth and costs.
A spokesperson for Paytm emphasized the company’s commitment to the integration of AI, stating, “We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce in operations and marketing.”
The spokesperson further highlighted the positive impact of AI implementation, stating, “We will be able to save 10-15 per cent in employee costs as AI has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year.”
The move underscores the ongoing debate surrounding the role of AI in the workplace and its implications for human employment. While AI promises increased efficiency and cost savings for companies, it also raises concerns about job displacement and the need for reskilling the workforce to adapt to the evolving technological landscape.
Despite the workforce reduction in certain areas, One 97 Communications remains committed to growth and innovation. The company plans to offset the job losses by hiring fresh talent, particularly focusing on new business segments.
