Paytm Targets 10% Workforce Growth in AI Push Despite 400 Planned Layoffs: Report

Paytm plans to hire around 4,000 employees over the next nine months as it expands its merchant network and AI-led product offerings, even as the fintech firm prepares to cut about 400 roles following its latest appraisal cycle.

According to reports, the recruitment drive would increase Paytm's workforce by roughly 10%, taking its headcount beyond the current level of around 40,000 employees. At the same time, the company is laying off about 1% of its workforce, or roughly 400 employees, after completing performance reviews, a company spokesperson said.

The hiring programme, which includes senior leadership positions, will continue through March 2027. Paytm plans to recruit across product, technology, and AI teams as it seeks to strengthen its offerings beyond payments.

"Over the last two months, we have added more than 800 people and are in the process of recruiting a further 4,000," the company said in a statement to Bloomberg.

The move comes as the company continues to rebuild after regulatory action against Paytm Payments Bank disrupted its operations. The digital payments company has been revamping its business since Indian regulators targeted its banking affiliate two years ago, Bloomberg reported.

CEO Vijay Shekhar Sharma said the company has been focusing on increasing the adoption of lending, investment, and other financial products among Paytm's large user base. The company has reported four consecutive profitable quarters, recovering from turmoil stemming from restrictions on its banking affiliate.

Bloomberg reported that Paytm cut more than 4,500 jobs in the aftermath of the regulatory curbs, citing company disclosures and previous reporting. The Reserve Bank of India subsequently cancelled the operating licence of Paytm Payments Bank, forcing a formal wind-down of the entity. Most employees at the banking affiliate have already been laid off, while some were absorbed into other parts of the group.

Paytm's shares gained about 2.5% at 12 pm on June 9 after the developments; however, they were down 18% year-to-date.