Paytm: The parent company of Paytm, One97 Communications has recently laid off hundreds of job roles. The move was taken after the heavy AI deployment in the organised across sales and engineering verticals. The job cuts raise concerns about the potential job displacement due to AI. Check more details of the news below.
Reason for Job Cuts
The primary reason for cutting hundreds of roles is the heavy deployment of Artificial Intelligence aimed at cost-cutting and increasing the efficiency in these roles. Another reason stated is Paytm’s objective to improve its core business of payment by increasing manpower.
Paytm said the induction of AI will help them save at least 10 per cent in employee costs and will help them “deliver more than expected”.
Paytm Shares…
“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 over a period of time. 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,” Paytm said
Our core business of payment may see manpower increase by 15,000 more in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India. In this, Insurance and Wealth will be a logical expansion of our platform, in continuation of our focus on the existing businesses. Having shown the strength of our distribution-based business model in loan distribution, we are expanding the same to focus on new businesses to drive scale,” the firm said.
Founder and CEO of Paytm, Vijay Shekhar Sharma is also promoting his employees to use Microsoft Corp and AI tools offered by Google which can ultimately help the brand to decrease the duration of product development.
Paytm’s 2021 Layoffs
This is not the first time Paytm fired a considerable number of employees. Earlier in 2021, Paytm fired around 700 employees. The reason for the previous layoffs was stated to be the non-performance of the fired employees.
Paytm’s Future Plans
Paytm has also shared its plans to hire around 15000 contract salespersons to increase the number of merchants on its network which will ultimately help the organisation to gain more profits.
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