Acko Cuts 5% Workforce Amid AI Adoption and IPO Plans

Acko has initiated an internal restructuring exercise as it increases the use of artificial intelligence across operations, while also moving closer to a potential public listing in FY27. 

Workforce Realignment and AI Transition 

As per the Mint report, the company is transitioning around 60 employees, which accounts for nearly 5% of its workforce of approximately 1,200 people.  

The move has been described internally as a structural realignment rather than a cost-cutting measure, reflecting a shift in how the organisation operates in an AI-driven environment. 

The changes are distributed across the organisation, with no single team or function seeing a disproportionate impact. The restructuring is linked to increased reliance on automation and AI-enabled processes, which are reshaping workflows across departments. 

Employees affected by the transition have been provided with a notice period of about two-and-a-half months, along with the option to opt for notice pay.  

The company is also extending support measures including 15 days of salary for every completed year of service, health insurance coverage for 8 months, and career transition assistance. In certain cases, employees are also being allowed to retain their work devices to aid in their transition. 

IPO Plans and Strategic Direction 

As per the report, Acko is preparing for a potential initial public offering in FY27 and is reportedly targeting a fundraise in the range of $300 million to $400 million.  

Discussions with investment bankers are currently at an early stage. The proposed offering is expected to include a mix of fresh equity issuance as well as secondary share sales by existing investors. 

The restructuring exercise aligns with the company’s broader effort to optimise operations ahead of its public market debut. 

Financial Performance and Cost Trends 

On the financial front, the company reported a net loss of ₹424.4 crore in FY25, showing a significant improvement of 57% compared to ₹669.9 crore in the previous year. At the same time, operating revenue increased 35% year-on-year to ₹2,836.8 crore from ₹2,106 crore. 

Cost metrics also showed moderation, with employee expenses declining to ₹334 crore from ₹354 crore and marketing expenditure reducing to ₹496 crore from ₹562 crore. The company has not yet disclosed its financial performance for FY26. 

Read More: Inox Clean Energy Revives IPO Plans After Withdrawal, Targets Larger Issue! 

Conclusion 

Acko’s restructuring reflects a broader shift towards AI-led operations, balancing efficiency gains with workforce adjustments as the company positions itself for its next phase of growth and a potential market listing.

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