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Paytm’s parent company One 97 Communications has let go of over 1,000 employees from various departments over the last few months, according to The Economic Times.

The layoffs will affect at least 10% of the company’s workforce. Most of the roles have been impacted by AI-powered automation, which aims to eliminate repetitive tasks and roles to drive efficiency, cut costs, and foster growth. 

YourStory has reached out to the company for a comment and is awaiting a response.

The fintech giant is focusing on expanding its wealth management section and establishing a robust insurance distribution business.

A few months ago, the company also announced that it has sharpened its focus on its AI capabilities and is building an Artificial General Intelligence software stack

“Paytm is investing in AI with an eye on building an Artificial General Intelligence software stack. We believe by building it in India we are not only making our country’s tech capability but also creating something that could be leveraged outside India,” said CEO Vijay Shekhar Sharma, in a letter to shareholders, in its Annual Report 2023.

Recently Paytm also announced that it will slow down on disbursing small ticket loans less than Rs 50,000—referred to as Postpaid loans—and focus on high-ticket lending for consumers and merchants.

“On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than Rs 50,000, which is prominently the postpaid loan product,” it said in an exchange filing. “…it will now be a smaller part of its loan distribution business going forward,” it added.