To all paytm folks and people having first hand knowledge of this matter: how true is the statement that the 1k layoffs are due to AI? or is it just a bs PR move to justify layoffs (like any other organisation)
100% bullshit 😆
AI is like an easy target to blame.
Truth is - They have accumulated insane NPAs in low ticket size loans which RBI also highlighted. Pausing that business made a huge chunk of people redundant. At the same time, there’s insane pressure to boost up the stock price as it’s still treading much lower than IPO price.
Complete bullshit. I'm a Paytm employee and a part of the lending team under which comes the said "low ticket sized loans" team aka Paytm Postpaid. Yes, this team has been impacted but it had just a handful of people. And not all of them have been impacted. Most of the team members were absorbed into other verticals and just a couple of folks were laid off. Also, it didn't suffer from the NPA problem so that's not the reason at all.
Then why the layoffs?? There's no clear answer to this yet. But most likely it's the same as any other startup company that boomed post-covid. The reason is overhiring.
Paytm's workforce increased multifold post COVID with huge growth expectations but these expectations didn't materialise, hence the layoffs.
Based on what I've heard in conversations, most tech cuts were in the QA role because they've been able to sufficiently use AI to make these roles redundant.
^ Can someone from the PayTM engineering expand on what exactly the company solved using ML/LLMs/AI that made the QAs redundant?
Usage of AI internally would mean hiring more folks to build the required systems/products. There are hackathons on AI but that's about it.
Blaming AI is such a shameless move. You're not only being dishonest with your investors (general public) but also telling them that you're magically doing something with new tech to boost share price.
SB
It's a know fact the business is making losses for some time now, event though the qtr by qtr the loss margins have reduced.
To give positive outlook towards investors into Paytm ipo, it top priority to make the business profitable. Layoffs are yes one way to reduce the costs.
INMO ai is not going to helo much
Wow some fight in the comment section, I think this is due to the RBI guidance due to which now they have to limit loans to above 50k segment.Impact of same is around 30%, Same can be seen in stock price. Due to reduced top line they needed to reduce costs. @ElonMast NPA point can't verify with any public data or stock price movement.
There are news that massive layoffs are coming in Paytm. HR and Business Heads have been given targets - average 30% reduction expected across all teams. #bravenewworld
Poor timing !! Festive season, Christmas/new year and these layoffs. It's a remainder for everyone that compani...
Yes. I was the first casualty of the day
