Krutrim Lays Off Nearly Half of Remaining Workforce

AI startup Krutrim, led by Bhavish Aggarwal, has reportedly laid off another 20-25 employees in its second round of job cuts this year. The latest exercise significantly reduces the company's remaining workforce by nearly half.

The job cuts primarily impacted the startup's product and engineering teams. Before this recent restructuring, Krutrim was estimated to have a workforce of 40-50 employees. Earlier rounds of restructuring had already led to significant reductions in the sales, go-to-market, and business operations teams.

Employees were informed of the layoffs individually through calls with the HR team, who described the action as part of an organizational restructuring. Reports indicate that several teams have now been reduced to a single employee.

The startup is focusing on automating internal operations by integrating AI across workflows. Concurrently, employees have alleged that reimbursements for expenses have been unpaid for over five months, with delays also reported in leave encashment and salary payments.

Krutrim has recently pivoted its strategic focus from building a comprehensive AI ecosystem to AI cloud infrastructure and enterprise services. The company has discontinued its consumer-facing AI assistant, Kruti, while continuing to offer Krutrim Cloud and Krutrim Maps.