Krutrim, the artificial intelligence firm founded by Ola’s Bhavish Aggarwal, has reportedly laid off over 100 employees in a second wave of job cuts, according to a report by The Economic Times. This recent decision significantly impacted the linguistics team, many of whom had only recently joined the organization. The layoffs follow closely on the heels of an earlier downsizing effort in June, during which more than a dozen roles were eliminated. Sources familiar with the internal developments stated that this latest round of layoffs forms part of a broader “strategic realignment” aimed at streamlining operations and optimizing the use of resources.
The timing of these job cuts coincides with the post-launch period of Krutrim’s AI assistant, Kruti, which was introduced in June. As the development of the assistant has progressed, the company appears to have reached a stage where it no longer requires a large linguistics workforce. One insider revealed that nearly 80% of the training for Kruti has been completed, reducing the demand for linguistic talent that had initially played a key role in building the product’s capabilities.
Earlier this year, Bhavish Aggarwal launched Krutrim AI Labs with a significant investment of Rs 2,000 crore dedicated to advancing AI technologies. He also indicated plans to boost this investment to Rs 10,000 crore in the upcoming year. In addition, the company raised $50 million in funding from venture capital firm Z47 Partners, propelling it to unicorn status in 2024. These developments reflected Krutrim’s ambition to become a key player in India’s rapidly growing AI space.
However, despite the excitement surrounding AI innovation, the company is now shifting its focus from aggressive hiring to more efficient capital management. This mirrors a broader trend in the tech industry, where firms—both startups and established players—are cutting back on expenditures and resizing their teams in response to economic pressures. While artificial intelligence remains a hotbed for innovation and investment, companies like Krutrim are learning to balance rapid product development with cost control and strategic prioritization.
