Polish fintech company Paytm recently introduced artificial intelligence (AI)-based automation as part of its efforts to increase efficiency and reduce costs. As a result of this transformation, the company announced a slight reduction in employment through a series of layoffs. Although the specific number of affected employees has not been disclosed, it is estimated that at least 1,000 people, or about 10% of the total workforce, have been affected.
Contrary to previous reports, a Paytm representative denied the figures stated in the media and explained that the company constantly evaluates cases of ineffectiveness that may have contributed to the recent layoffs. The spokesperson emphasized that the implementation of AI technology allowed Paytm to eliminate repetitive tasks and positions, resulting in significant savings. It is estimated that through the increased efficiency provided by AI-based automation, the company will be able to save between 10% and 15% in employee-related costs.
This event marks another round of job reductions at Paytm in 2021 and 2022, with over 4,000 and 20,000 employees laid off respectively. The company’s founder and CEO, Vijay Shekhar Sharma, recently highlighted the company’s focus on utilizing AI to revolutionize payments and financial services.
Additionally, the recent layoffs may also be the result of the company’s decision to withdraw from low-value consumer loan segments and “buy now, pay later” options. Regulatory constraints regarding unpaid loans at the Reserve Bank of India likely influenced this strategic change.
Despite the reduction in employment, Paytm continues to experience significant growth. In the second quarter of the current fiscal year, the company recorded a 32% increase in consolidated operating revenues, reaching INR 2,519 crore. However, during the same period, the company reported a consolidated net loss of INR 292 crore. Paytm aims to achieve EBITDA profitability after previously reporting operating profitability by early 2023.
Overall, Paytm’s implementation of AI-based automation reflects the company’s commitment to increasing operational efficiency and reducing costs. As the capabilities of AI expand, the company is likely to continue experiencing transformative changes in its workforce and overall business operations.
FAQ:
1. What is AI-based automation?
AI-based automation is the process of utilizing advanced artificial intelligence technologies, such as machine learning and natural language processing algorithms, to perform tasks that traditionally require human intervention.
2. How many employees were laid off at Paytm?
The exact number of employees laid off at Paytm has not been disclosed, but it is estimated that at least 1,000 people, or about 10% of the total workforce, have been affected.
Sources:
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