One 97 Communications, the parent company of Paytm, has reportedly initiated a strategic move to streamline operations and reduce expenses by laying off more than 1,000 employees across various departments. The company is undergoing a transformation with AI-powered automation, aiming to achieve efficiency and cost savings of 10-15%. These job cuts, occurring over the past few months, represent a significant downsizing in the Indian tech industry this year. The move follows recent decisions like discontinuing small-ticket consumer lending and halting the “buy now pay later” lending segment on the UPI platform.

According to a Paytm spokesperson, the transformation involves AI-driven automation to eliminate repetitive tasks and roles in operations and marketing. The company anticipates the mentioned percentage savings in employee costs due to the efficiency delivered by AI. Paytm remains optimistic about its core payment business, expecting a potential increase of 15,000 employees in the coming year. The company emphasizes its dominant position in the payments platform, profitability, and ongoing innovation. Insurance and wealth are slated for expansion, building on the existing business focus. Paytm plans to leverage its distribution-based business model, showcasing strength in loan distribution, to drive scalability in new ventures.

Earlier this month, Paytm announced its intention to scale down its “Buy Now Pay Later” (BNPL) offering, Paytm Postpaid, signaling a cautious approach toward small-ticket loans. The company expressed a strategic shift to concentrate on larger-sized personal loans and merchant loans. In a recent move, Paytm declared plans to hire over 50,000 individuals in sales, aiming to onboard a greater number of merchants in smaller cities and towns as part of its money management product overhaul.

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