While refuting media speculations about the potential elimination of over 1,000 positions, the FinTech entity Paytm has officially acknowledged a “slight decrease” in its workforce.
The parent company of the FinTech firm, One 97 Communications, refrained from disclosing the exact number of job reductions, as per a Reuters report dated December 25.
A spokesperson from the company mentioned, “Artificial Intelligence (AI) has surpassed our initial expectations, enabling us to achieve a 10% to 15% reduction in employee expenses.”
As per reports, Paytm is undergoing organizational restructuring with the aim of attaining its maiden net profit post its IPO in November 2021.
A previous report by The Economic Times (ET) indicated that more than 1,000 employees at One 97 Communications had been laid off in recent months.
The company’s decision to withdraw from small-ticket consumer lending and the buy now, pay later (BNPL) sector followed regulatory constraints imposed by the Reserve Bank of India (RBI).
Although a director at One 97 Communications acknowledged the existence of downsizing, they disputed the specific figure, as highlighted by ET and Reuters.
The spokesperson informed ET that in the upcoming period, “our core repayment business may witness a workforce expansion of 15,000. By leveraging AI-driven technology, we are revamping our operations, streamlining repetitive tasks, and functions to enhance efficiency in growth and expenses, resulting in a marginal reduction in our workforce across operations and marketing.”
Reports suggest that Paytm is revamping its financial management processes to boost revenue, as disclosed on December 20. Additionally, the company plans to onboard over 15,000 contractual sales representatives to broaden its merchant network.
Vijay Shekhar Sharma, the founder and CEO of One 97 Communications and Paytm, expressed confidence that these initiatives, coupled with AI-driven cost-saving measures, could steer the company towards profitability in the coming year.
Following the RBI’s crackdown on unsecured consumer loans, Paytm’s stocks purportedly plummeted by approximately 30% on December 18.
In a bid to curb escalating consumer debt and defaults, the RBI mandated borrowers to reassess their credit requirements, prompted by a surge in delinquencies.
