Paytm lays off 1000 employees after adopting artificial intelligence, Details

Paytm: In an effort to reduce employment expenses, One97 Communications Ltd., the parent company of the digital payments startup Paytm, has let go of at least 1,000 workers across many departments.

A Paytm representative responded to rumours of layoffs at the company by stating that there has been a reduction in the number of employees in the operations and marketing teams. Paytm allegedly began the layoff process as early as October, according to sources.

Paytm adopts AI

According to Paytm, the company is implementing artificial intelligence to eliminate repetitive processes and roles, which would result in significant operational improvements. The business will be able to reduce personnel costs by 10 to 15 per cent using automation driven by AI. Apparently, 1,000 people have lost their jobs as a result of AI.

Paytm's layoffs are not an uncommon occurrence; other modern businesses have implemented comparable strategies to save expenses and streamline operations through the use of AI-powered technologies. It is noteworthy that during the first three quarters of the current year, a sizable portion of workers in the new-age financial organisations section lost their jobs.

Is AI a threat to employees?

According to a March 2023 analysis by Goldman Sachs, artificial intelligence poses a threat to 300 million full-time jobs. A third of respondents to PWC's Annual Global Workforce Survey expressed concern that AI might eliminate their jobs within the next three years.

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