
Paytm, a leading fintech company, has implemented AI technology to automate tasks and boost efficiency. This initiative led to a reduction in over 1,000 jobs across operations, sales, and engineering teams.
“With AI-powered automation, we’re eliminating repetitive tasks and optimizing operations, resulting in a small workforce reduction in marketing and operations,” said a Paytm spokesperson. “This will save us 10-15% in employee costs, exceeding our initial expectations.”
The company emphasizes its commitment to existing businesses like loans and wealth management, aiming to leverage its proven distribution model for further expansion. However, Paytm’s recent decision to scale back small-ticket loans and BNPL services, coupled with its workforce reduction in the lending team, suggests cost-cutting pressures.
Despite broker concerns and adjusted revenue estimates, Paytm reported a 32% revenue increase in Q2. The company remains focused on high-value personal and merchant loans to improve margins and offset the decline in lower-yielding postpaid loans.