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One97 Communication, the parent company of Paytm, has fired hundreds of workers in a variety of verticals, including engineering and sales, as a result of the company using artificial intelligence (AI) to automate workflow and guarantee cost savings. By integrating AI into its operations, Paytm has been able to save costs, increase operational efficiency, and eliminate positions and repetitive duties in the fintech industry as it works to improve its primary business of making payments by hiring more people.
The parent company of Paytm, One97 Communication, has let go of hundreds of employees across a range of industries, including sales and engineering, as a result of employing artificial intelligence (AI) to ensure cost savings through workflow automation. In order to strengthen its main business of facilitating payments by recruiting more people, Paytm has been able to reduce expenses, increase operational efficiency, eliminate positions and repetitive responsibilities in the fintech industry, and all of this while integrating AI into its operations. Paytm claims that by utilizing AI, they will be able to “deliver more than expected” and reduce labor costs by at least 10%. “This is how we are using automation driven by AI to revolutionize our operations.” We expect that AI will outperform us, thus we will be able to cut staff costs by 10% to 15%. Additionally, according to Paytm, “We review instances of non-performance all year long.”
“In the next year, we could add another 15,000 employees to our core payment business.” Since we have a strong business plan and a dominant position in the payments industry, we won’t stop developing for India. As we rationally expand our platform to encompass wealth and insurance, we will continue to focus on our current operations. The success of our loan distribution approach demonstrates that, in order to attain scale, we are broadening our distribution-based business model to target new industries,” the company said. The 10,000-person technology, product, and engineering teams at Paytm are being encouraged by their founder and CEO, Vijay Shekhar Sharma, to use artificial intelligence (AI) tools from Google and Microsoft Corp.
This has allowed Paytm to shorten the time it takes to develop new items from weeks to just a few days. In December of this year, Paytm said that it will be cutting back on the number of small-ticket loans it offers in favor of focusing on expanding its high-end personal and merchant loan products. Paytm laid off between 500 and 700 employees in 2021 as a result of subpar performance. Due to the negative feedback on the decision, brokers have reduced their estimates for Paytm revenue. The company plans to bring on more than 15,000 contract salespeople to expand its network of merchants in an attempt to turn a profit ahead of schedule. By the conclusion of the next fiscal year, it plans to try to increase its salesforce to over 50,000 personnel in an attempt to sign up more merchants in smaller Indian cities and villages. Investors are worried about their money as Paytm has plunged by nearly 70% since its $2.5 billion Initial Public Offering (IPO).
