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Updated December 26th, 2023 at 12:46 IST

Paytm shares dip after laying off over 1,000 employees

The Noida-based firm's decision to lay off was also fuelled by its plans to implement cost-cutting measures.

Reported by: Business Desk
Paytm
Paytm | Image:Paytm

 

The Vijay Shekhar Sharma-backed Paytm's shares today fell as much as 1.80 per cent to hit an intraday low of Rs 630.30, after its decision to lay off over 1,000 employees.

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The fin-tech firm took a stern step by laying off more than 1,000 employees, from its engineering, operations and sales division, while deciding to subsequently implement AI to bolster efficiency.

The Noida-based firm's decision to lay off was also fuelled by its plans to implement cost-cutting measures.

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Paytm is evolving its operations with AI-powered automation to grow efficiency, remove repetitive tasks and roles, a company spokesperson said, citing media reports.

"We will be able to save 10-15 percent in employee costs as AI has delivered more than we expected it to," he added.

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In the fiscal year ended March 2023, Paytm on an average had 32,798 direct employees and 1,589 contractual employees worldwide across its various units, its annual report showed.

In the quarter-ended September, Paytm reduced its losses to Rs 290 crore, as compared to Rs 571 crore in the same quarter last year.

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The revenue from operations during the second quarter this year posted an annual jump of 32 per cent to Rs 2,519 crore, compared to Rs 1,914 crore in the corresponding quarter last year.

As of 12:28 pm, Paytm shares were trading 1.12 per cent lower at Rs 634.70

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Published December 26th, 2023 at 12:43 IST

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