AI unicorn Krutrim, founded by Ola’s Bhavish Aggarwal, has reportedly laid off over 100 employees across various verticals in what marks the company’s second round of job cuts within six months. The layoffs are part of a strategic shift aimed at building “leaner and more agile teams,” according to multiple media reports.
The move comes as the Bengaluru-based startup—touted as India’s answer to global AI giants—adjusts its workforce to align with evolving operational priorities and product strategies. While the company has not issued an official public statement at the time of reporting, sources familiar with the matter confirmed the restructuring is focused on eliminating redundancies and streamlining decision-making processes.
Layoffs Follow Earlier Hiring Spree Across Verticals
The job cuts come just months after Krutrim had aggressively expanded its team, hiring talent across engineering, product, and research functions. Reports suggest the current layoffs span non-core roles as well as certain technical teams, particularly where functions may now be consolidated or automated.
Earlier this year, Krutrim had also made headlines for becoming the first Indian AI unicorn, backed by marquee investors and strategic partners. The startup aims to build India-specific foundational AI models and solutions, including large language models trained in Indian languages.
Industry-Wide AI Consolidation Amid Market Pressures
Krutrim’s layoffs mirror a broader trend in the AI startup ecosystem, where several well-funded companies are restructuring to conserve capital and improve operational efficiency amidst growing scrutiny on monetization models.
While the AI sector continues to attract significant investor interest, startups are increasingly being evaluated not just on innovation, but on scalability, profitability, and go-to-market execution. Industry watchers believe that companies like Krutrim are responding to this shift by realigning internal resources to focus on core product development and market readiness.
A Strategic Realignment, Not a Slowdown
Despite the layoffs, Krutrim is reportedly continuing to invest in its core AI initiatives, including multilingual LLMs, enterprise solutions, and cloud-native tools. Sources close to the company emphasized that the decision was not a sign of business slowdown, but rather a course correction to improve delivery speed and reduce hierarchy.
In a previous interview, Bhavish Aggarwal had stated that Indian AI companies must “innovate with speed” to remain competitive globally—a sentiment that aligns with the current restructuring effort. By flattening the organizational structure, Krutrim hopes to reduce overheads while empowering high-performance teams.
Ongoing Impact on Talent and Perception
The layoffs, however, have sparked concern among affected employees, some of whom have shared updates on professional networking platforms seeking new roles. As India's AI talent pool continues to grow, such shifts also underscore the volatile nature of emerging tech ventures, where hiring cycles can often be abrupt.
Still, Krutrim’s long-term vision remains ambitious—positioning itself as a homegrown AI powerhouse capable of challenging global incumbents by building models tailored to Indian data, languages, and needs.
