Paytm is set to lay off around 1% of its workforce, or approximately 400 employees, while simultaneously launching a major recruitment drive that will add about 4,000 new hires over the next nine months.
According to Bloomberg, the move reflects the company's evolving workforce strategy as it expands its merchant network and accelerates investment in artificial intelligence-led products and services.
The hiring programme is expected to increase Paytm's workforce by roughly 10% from its current employee base of around 40,000 people, even as the company undertakes selective job cuts following its annual performance appraisal cycle.
Hiring push targets AI, technology and product roles
The recruitment drive will continue through March 2027 and will include hiring for both specialist and senior leadership positions.
Bloomberg reported that Paytm plans to recruit across multiple functions, including:
Artificial intelligence
Technology
Product development
Senior leadership roles
The company said it has already made significant progress in expanding its workforce.
"Over the last two months, we have added more than 800 people and are in the process of recruiting a further 4,000," Paytm said in a statement.
The hiring initiative forms part of a broader effort to strengthen Paytm's merchant ecosystem and develop AI-powered offerings aimed at expanding engagement across its financial services platform.
Workforce changes follow a turbulent period
The latest workforce adjustments come after a difficult period for the fintech company following regulatory action against its banking affiliate.
Over the past two years, Paytm has been reshaping its business after Indian regulators targeted Paytm Payments Bank, once a key component of its financial services ecosystem.
The company previously reduced its workforce significantly in response to the fallout. Key workforce developments include:
More than 4,500 jobs were cut following regulatory restrictions on Paytm Payments Bank.
The company is now planning to hire 4,000 employees over the coming nine months.
Around 400 employees are expected to be affected by the current performance-linked layoffs.
Paytm's workforce currently stands at approximately 40,000 employees.
Bloomberg reported that the latest cuts are considerably smaller than the reductions carried out in the previous year.
Profitability supports expansion plans
The hiring push comes as Paytm's financial performance has improved.
The company has recorded four consecutive profitable quarters, marking a turnaround from the disruption triggered by regulatory action against its banking unit.
Vijay Shekhar Sharma, Founder and Chief Executive Officer of Paytm, has been steering the company towards deeper engagement with its large user base by expanding access to lending, investment and other financial products.
The company's improved profitability appears to have given management greater confidence to invest in growth areas, particularly technology and AI capabilities.
Banking unit winds down operations
The future of Paytm Payments Bank remains separate from the parent company's expansion plans.
Bloomberg reported that the Reserve Bank of India formally cancelled the operating licence of the banking affiliate, forcing its wind-down.
Most employees at the banking unit have already exited over the past two years, although some have been absorbed into other parts of the Paytm group. The remaining few hundred employees are expected to leave as the closure process progresses.
Balancing efficiency with growth
Founded in 2010, Paytm has evolved from a mobile recharge platform into one of India's largest digital payments and financial services companies. While the business continues to deal with the aftermath of regulatory intervention, management is increasingly focusing on growth initiatives tied to technology and AI.
The latest workforce strategy reflects that balancing act. While performance-linked layoffs will affect a small portion of employees, the much larger hiring programme suggests Paytm is redirecting talent investment towards areas it believes will support its next phase of growth.
As competition intensifies across India's fintech sector, the company's ability to attract AI, product and technology talent while maintaining profitability will be closely watched in the months ahead.