Paytm shares slip 2% as firm bets big on Al, lays off employees

Paytm lay off 1000 employees news: Shares of Paytm declined nearly two per cent on Tuesday, December 26, as the fintech major, as per reports, has laid off over 1,000 employees after the firm implemented a slew of AI technology to improve efficiency.

Paytm share price NSE: Shares of Paytm declined nearly two per cent on Tuesday, December 26. Image: Reuters

Paytm share price NSE, Paytm lay off 1000 employees news: Shares of Paytm declined nearly two per cent on Tuesday, December 26, as the fintech major, as per reports, has laid off over 1,000 employees after the firm implemented a slew of AI technology to improve efficiency. Paytm shares slipped nearly two per cent to touch the day's low of Rs 630.25 on NSE in opening deals. The counter traded 1.29 per cent lower at Rs 633.9 on NSE at 9:44 AM.

A Paytm spokesperson said, "We are transforming our operations with AI-powered automation to drive efficiency, eliminating repetitive tasks and roles to drive efficiency across growth and costs, resulting in a slight reduction in our workforce in operations and marketing."

"We will be able to save 10-15 per cent in employee costs as Al has delivered more than we expected it to. Additionally, we constantly evaluate cases of non-performance throughout the year," the spokesperson added.

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The company that introduced India to mobile payments is building an India-scale AI system that will help various financial institutes capture possible risks and frauds while also protecting them from new kinds of risks due to advancements in AI.

In doing so, the company is also optimising its workforce as it eliminates repetitive tasks and encourages its employees to adapt to AI. The company spokesperson further said, "Our core business of payment may see manpower increase by 15,000 more in the coming year. With a dominant position in the payments platform and a proven profitable business model, we will continue to innovate for India."

Insurance and Wealth will be a logical expansion of our platform in continuation of our focus on existing businesses. Read more

(with ANI inputs)

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