Bhavish Aggarwal’s AI Firm Krutrim Lays Off Over 100 Employees: Report

AI startup Krutrim, founded by Ola’s Bhavish Aggarwal, has reportedly let go of more than 100 employees in a fresh round of layoffs, as per an Economic Times report. This comes just weeks after its first round in June 2025, which saw over a dozen job cuts.

The layoffs took place last week and impacted various teams, with a significant portion from the linguistics division.

First Round of Layoffs Took Place in June

The latest job cuts follow an earlier round in June 2025, where more than a dozen employees were let go. Both rounds are part of the company’s recent workforce restructuring.

Many of the affected employees were part of the linguistics team, which had been hired less than 6 months ago. As per the report, the team was reduced due to the completion of training work on the company’s AI product.

Kruti Assistant Launched in June

The layoffs come shortly after the company launched its AI assistant, Kruti, in June 2025. Ass per the report that around 80% of the product training had been completed, reducing the requirement for a large linguistics team.

Read more: Bhavish Aggarwal Backed Krutrim Introduces Kruti, Its Consumer AI Agent!

Company Cites Realignment

As per the report, in a statement, Krutrim said it is realigning operations to build leaner and more agile teams, as per the reports. The company added that this restructuring is in line with evolving business priorities.

Investments Announced Earlier This Year

Earlier in 2024, Krutrim launched AI Labs with a planned investment of  ₹2,000 crore. The company also announced an expansion plan targeting  ₹10,000 crore in AI development by next year.

Krutrim had raised $50 million from venture capital firm Z47 Partners, helping it reach unicorn status earlier this year.

Conclusion

The company’s decision to reduce staff, especially in the linguistics team, comes amid product milestones and earlier hiring. Krutrim’s focus now appears to be on managing resources as product development progresses.

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