New Delhi, June 9 -- Indian fintech pioneer Paytm is set to hire about 4,000 people over the next nine months, part of a pivot aimed at expanding its merchant network and artificial intelligence-driven product offerings.

The increase would mark a roughly 10% increase in its headcount that stands at about 40,000 employees. Paytm is also laying off 1% of its staff, or about 400 people, after the current performance appraisal cycle, a company spokesperson said. The cuts follow more substantial reductions in the previous year.

The digital payments operator has been revamping its business after Indian regulators targeted its banking affiliate two years ago. Chief Executive Officer Vijay Shekhar Sharma is trying to get more of the company's h...