Indian fintech giant Paytm has announced layoffs of 1,000 employees, affecting its operations, sales, and engineering teams. The primary reason for this decision is the integration of artificial intelligence technologies to enhance operational efficiency by using AI-driven automation to eliminate repetitive tasks, thus reducing costs and improving efficiency. This is not the first time layoffs have occurred; back in 2021, Paytm had previously laid off some employees due to performance issues. The layoffs mainly affect the lending team, which, despite the strong performance of the loan business, accounts for more than 30% of the total workforce. In response to cost pressures, the company has decided to downsize.

Vijay Shekhar Sharma, founder of Paytm, has established the 'VSS Investments Fund' aimed at investing in AI and electric vehicle startups. The fund has a total size of ₹30 million, sponsored by companies under Vijay Shekhar Sharma, focusing on environmentally friendly and sustainable startups in India's tech incubation. This initiative will promote the development of tech startups in India, providing more environmentally friendly and sustainable solutions.