Doomsday is indeed looming as AI takes over more of the human world. Speculations about AI threatening human jobs are no longer mere conjecture, as evidenced by a recent report on tech company Paytm.
The report reveals that Paytm has laid off thousands of employees from its operations, sales, and engineering teams as it steers towards an AI-integrated future.
In a statement to a news outlet, a Paytm spokesperson unveiled the company’s shift towards AI-driven automation to enhance efficiency. This move involves streamlining operations and marketing, resulting in a slight reduction in the workforce.
The implementation of AI has surpassed expectations, leading to a 10-15% reduction in employee costs. Ongoing assessments for non-performance take place throughout the year.
“Insurance and Wealth will be a logical expansion of our platform, continuing our focus on existing businesses. Having demonstrated the strength of our distribution-based business model in loan distribution, we are extending the same focus to new businesses to drive scale,” added the Paytm spokesperson.
On December 7th, Paytm’s parent company, One97 Communications, announced a strategic shift by slowing down small-ticket postpaid loans while expanding high-ticket personal and merchant loans. Brokerages responded by cutting revenue estimates.
Despite anticipating a 50% decrease in postpaid loans, the company assured that this wouldn’t significantly impact margins or revenue, emphasizing the minimal revenue impact due to the low take rate.
In Q2 FY24, One97 reported a 32% YoY increase in consolidated revenue to Rs 2,519 crore. Losses narrowed from Rs 571 crore in Q2 FY23 to Rs 292 crore.
However, AI causing job losses is profoundly disheartening, and the fear is palpable among many. Especially concerning is the substantial number of 1000 job cuts in a month, which will undoubtedly leave a noticeable dent as Paytm advances towards an AI future.
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