Paytm Announces Workforce Reduction as Part of Cost-Cutting Efforts

Bengaluru: Paytm’s parent company, One 97 Communications, confirmed a “strategic workforce optimization” on Monday, trimming personnel to streamline operations and achieve cost savings. While specific details regarding the number of jobs affected remain undisclosed, a company spokesperson refuted recent media reports suggesting potential cuts exceeding 1,000 roles.

The spokesperson emphasized that the restructuring aims to realize a 10-15% reduction in employee costs, leveraging the efficiency gains achieved through Artificial Intelligence (AI) beyond initial expectations. This move comes as part of Paytm’s broader operational overhaul, strategically undertaken to attain its inaugural net profit since its listing in November 2021.

As of the fiscal year ending March 2023, Paytm maintained an average workforce of 32,798 directly employed staff and 1,589 contracted employees globally across its diverse units, as indicated in its annual report. The company’s proactive measures reflect a commitment to financial sustainability in the dynamic landscape of fintech.