Layoffs
on
QuirkyJellybean
Paytm: AI led job loss
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)
16mo ago
Talking product sense with Ridhi
9 min AI interview5 questions
FluffyCupcake
Amazon16mo
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.
SwirlyTaco
PayTM16mo
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.
QuirkySushi
Hubspot16mo
^ Can someone from the PayTM engineering expand on what exactly the company solved using ML/LLMs/AI that made the QAs redundant?
MagicalMarshmallow
PayTM16mo
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.
CosmicUnicorn
PayTM16mo
SB
PrancingJellybean
PayTM15mo
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
SwirlyKoala
Stealth16mo
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.
Discover more
Curated from across
Massive Layoffs Coming - Paytm
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
Top comments
Poor timing !! Festive season, Christmas/new year and these layoffs. It's a remainder for everyone that compani...
They're citing AI is the reason for layoffs as if they've invented AGI LOL
Will this affect engg and product also? Or only business
Indian Startups10mo
by PrancingPotatoProduct Manager
Top comments
Yes. I was the first casualty of the day
Absolutely! One entire floor is booked by HR for firing. Already the process has started!
They should first layoff the incompetent overpaid toxic VPs and Product Heads. Especially RD.
by MagicalMarshmallowDunzo
Layoffs due to AI
Recently we saw Paytm making layoffs due to AI. Are there any other companies that did the same? People whose companies laid off people due to AI. What kind of automations made it possible? Is AI actually doing the work or is it just an ...