Exclusive: Gupshup Lays Off 100+ Employees In Cost-Cutting Exercise

SUMMARY

Laid-off employees were not offered severance packages, but have been asked to serve a 60-day notice period

Gupshup confirmed the layoffs and called it a step to optimise its cost structure and build a leaner foundation

The move comes barely four months after an earlier round of cutbacks in which close to 200 employees were let go

Conversational AI company Gupshup has carried out another round of layoffs, this time letting go of at least 100 employees, including junior developers, as per sources. The move comes barely four months after an earlier round of cutbacks in which close to 200 employees were let go.

The company, which is said to be planning an IPO in the next 12-24 months, confirmed the layoffs but declined to state the number of employees that were impacted.

Sources told Inc42 that the laid-off employees were asked to either serve a 60-day notice period or exit without any compensation or severance pay if they decline to serve the notice period.

“Over the past few years, Gupshup has invested deeply in growth and innovation. As this cycle matures, we are taking steps to optimise our cost structure and build a leaner, stronger foundation for the future,” the company said in a statement.

The startup also said that it is also leveraging automation to drive efficiency, and meeting its financial goals in preparation for important corporate milestones ahead.

“Throughout this process, our priority is to ensure people are treated with fairness, empathy, and respect, in line with Gupshup’s values and HR policies,” it said in a statement.

The company declined to comment on the allegations around lack of severance pay or which offices were impacted in the cost-cutting measure.

In India, the company’s headcount has fallen by 140 between May and July 2025 as per EPFO data. But it’s unclear how many of these were layoffs and how many were resignations.

Addressing Inc42’s questions about the India workforce, Gupshup said it’s a global company and its “headcount varies across countries.”

Gupshup’s AI Turn

Founded in 2004 by Beerud Sheth, the San Francisco and Mumbai-based company transitioned to become a conversational AI platform in 2024 having spent most of its lifetime as an SMS and cloud telephony company and then pivoting to communications SaaS for enterprises.

In 2023, it also introduced its own large language model, built specifically for enterprise use, following which the company has completely pivoted to a conversational AI platform but with the same focus on enterprises. Its current focus is on building autonomous agents for sales, marketing and other enterprise operations.

The layoffs come just weeks after Gupshup raised $60 Mn (about INR 500 Cr) in a mix of equity and debt funding from Globespan Capital Partners and EvolutionX Debt Capital. This round was raised to improve its AI agents and expand into emerging markets.

To date, Gupshup has raised over $480 Mn in funding, with its last major round being $240 Mn in 2021 led by Tiger Global, which valued the startup at $1.4 Bn at the time. The company has not disclosed its financials for FY24 or FY25.

CEO Sheth said in July this year that an IPO is on the cards in the next 24 months, however, the company plans to redomicile to India before the public listing. As of now, Gupshup’s parent entity is registered in the US.