Krutrim Lays Off Over 100 Employees In Fresh Job Cuts: Report

Krutrim Lays Off Over 100 Staff In Fresh Job Cuts: Report

SUMMARY

Krutrim has reportedly laid off more than 100 employees in a second round of job cuts as part of a “strategic realignment”

The layoffs affected a large portion of the company’s linguistics team

Krutrim's first round of lay offs was in June, when over a dozen roles were cut

AI unicorn Krutrim has reportedly laid off more than 100 employees in a second round of job cuts as part of a “strategic realignment” and an attempt to build leaner teams to manage resources better.

The layoffs affected a large portion of the company’s linguistics team, which had only recently joined, as per an ET report.

One of the sources previously told the publication that Krutrim employed about 600 employees in the linguistics team.

Inc42 has reached out to Krutrim for comments on the development. The story will be updated based on their response.

This comes just weeks after the company’s first round of lay offs in June, when over a dozen roles were cut.

The development comes almost over a month after Krutrim unveiled its own agentic AI assistant Kruti, a Gen 2 multimodal assistant analyses text, voice, image and files and generates responses and in-depth reports.

Krutrim has witnessed a series of high level exits since the past year. The Bhavish Aggarwal-led company also witnessed two senior departures earlier this year, including applied AI director Ashish Kumar and senior engineering manager Priyanka Nayak.

While Kumar stepped down in February after working about a year with Krutrim, Nayak exited in January after an 18-month stint.

On the contrary, the company confirmed its efforts on stepping up hiring efforts for its AI labs located in Bengaluru, US and Singapore since April.

Despite these challenges, CEO Bhavish Aggarwal is optimistic about the AI unicorn’s future. In February, the company announced plans to invest INR 2,000 Cr in Krutrim, with a commitment of INR 10,000 Cr by next year.

Following the launch of its agentic AI assistant, the startup also acquired BharatSah’AI’yak, a platform built by technology consultancy firm Samagra that develops, deploys and manages AI solutions.

Meanwhile, the AI startup also announced a partnership with Chinese consumer electronics major Lenovo to develop India’s largest supercomputer, which will be powered by Krutrim’s cloud offerings.