Clear Fires Over 100 Employees Amid AI Push

Tax filing platform Clear, formerly known as ClearTax, said it has laid off about 16% of its workforce amid a “broader strategic organisational restructuring”. 

The Peak XV Partners-backed startup didn’t disclose the exact numbers of employees impacted by the restructuring in its statement. As per its employee PF details available on the EPFO website, about 130-140 employees lost their jobs in the retrenchment round. The 14-year old SaaS startup had 855 employees in June 2025. 

It is pertinent to mention that Clear had been on a hiring drive of sorts over the past year, growing its employee strength by 11% from 771 employees in June 2024. Notably, the startup laid off about 200 employees in a retrenchment exercise in September 2022 as well.

Clear didn’t specify the reason for the latest layoff exercise.

“As Clear evolves, certain roles have been impacted by changing business needs, and we are reshaping teams to enhance agility and future-readiness,” a Clear spokesperson said in the statement. 

Clear was founded in 2011 by Archit Gupta, Ankit Solanki, and Srivatsan Chari to provide a wide range of tax and financial services to individuals, businesses, and chartered accountants in India. It has raised nearly $75 Mn from notable investors like Elevation Capital (formerly SAIF Partners), Peak XV (formerly Sequoia Capital India), Y-Combinator, Stripe, among others, to date. 

Over the years, Clear has gained prominence for its income tax return (ITR) e-filing platform. Besides, it offers a comprehensive suite of GST-related products and services, expert-assisted plans and advisory services to address complex tax scenarios. 

The layoffs come at a time which is typically a peak season for the startup, as the last date to file ITR for assessment year 2025-26 has been extended to September 15.

Notably, Clear is also expanding its services overseas. “We remain financially strong and continue to scale globally – serving CFO offices across India, the UAE, Singapore, France, Belgium, and beyond – with the goal of building a trusted, global platform for compliance, finance automation, and business intelligence,” the spokesperson added.

While the SaaS player is yet to file its financial statements for FY25, it managed to trim its loss significantly in the previous fiscal year. The startup managed to cut its net loss by 61% to INR 91 Cr in FY24 from INR 233 Cr in the previous fiscal year. Its operating revenue zoomed over 95% to INR 207 Cr from INR 106 Cr in FY23. 

Clear’s layoffs also coincide with its AI push. Last month, the startup launched ‘ClearTax AI’, which it claims helps users file their ITR “anytime, anywhere”.

The startup’s increased focus on AI while simultaneously firing tech talent, which as per reports included recent graduates from premier institutions like IIT, is not a standalone instance. Fintech major Paytm has cut thousands of jobs over the last couple of years amid rise in AI-led automation.