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28. July 2025
Krutrim Announces Shocking Round Of Layoffs Just Six Months After Initial Job Cuts
Krutrim, the AI firm founded by Ola’s Bhavish Aggarwal, has announced another round of layoffs, affecting over 100 employees just six months after their recruitment. This move comes as part of the company’s efforts to streamline its operations and focus on its long-term goals.
The news has sent shockwaves through the tech industry, with many wondering what prompted such a drastic measure so soon after the initial round of job cuts in June. According to sources close to the matter, the decision was made due to a shift in the company’s organizational priorities, which were influenced by external circumstances.
A primary reason cited for the layoffs is the delay in Krutrim’s fundraising efforts. The company had initially set its sights on raising $500 million but has since reduced this target to $300 million due to lukewarm interest from investors. This decline in funding has forced the company to re-evaluate its priorities and focus on more cost-effective strategies.
Another factor contributing to the layoffs is the lack of traction for Krutrim’s products, particularly its large language model and cloud offerings launched in 2024. Despite being touted as a game-changer in the AI space, these products have struggled to gain significant market share, with several startups opting for more established platforms provided by global hyperscalers.
The impact of this decline on Krutrim’s operations has been significant, leading to leadership changes within the company. Nearly a dozen senior executives left their positions in 2024, and additional departures occurred earlier this year. These exits have further complicated matters, leaving some to wonder if Krutrim’s vision for an agentic AI assistant is still viable.
Despite these challenges, Krutrim remains committed to its mission of creating India’s first comprehensive AI platform. The company continues to assert that Kruti, its flagship product, is capable of performing a wide range of tasks, including responding to commands, booking cabs, paying bills, and ordering food. Currently, Kruti supports 13 Indian languages, making it an attractive option for regional businesses looking to tap into the growing AI market.
Krutrim’s strategy involves integrating Kruti into India’s daily digital landscape by offering voice-driven services tailored to local audiences. This approach has been praised by some as a forward-thinking move but others have expressed skepticism about the company’s ability to execute on this vision.
One of the key factors driving Krutrim’s efforts is its ambition to become an integral part of India’s digital ecosystem. The company sees itself as a leader in the AI space, with a mission to create products that are not only innovative but also accessible to all Indians. This goal has resonated with some investors who see potential in Krutrim’s technology and vision.
However, others have expressed concerns about the company’s financial prospects and the ability of its products to gain traction in a crowded market. Some analysts have questioned whether Krutrim’s focus on agentic AI assistants is misplaced given the growing interest in more traditional AI applications like computer vision and natural language processing.
As Krutrim navigates this challenging period, it remains to be seen how the company will respond to these concerns and criticisms. Will its commitment to innovative products and regional accessibility be enough to win over investors and customers? Only time will tell.
For now, one thing is clear: Krutrim’s struggles serve as a reminder that even the most promising startups can face significant challenges in the AI space. As the tech industry continues to evolve, it will be interesting to see how companies like Krutrim adapt and respond to changing market conditions.
In the meantime, investors and analysts will be watching closely to see how Krutrim’s financials unfold and what impact the layoffs will have on the company’s overall trajectory. With its reputation for innovation and ambition at stake, Krutrim has a lot to prove in the coming months.
The stakes are high, but Krutrim remains steadfast in its pursuit of creating India’s comprehensive AI platform. As the company continues to evolve and adapt, one thing is certain: only time will tell if its vision will become a reality.
Krutrim’s decision to downsize highlights the ongoing struggles faced by many startups in the rapidly evolving AI space. With increasing competition and shifting market demands, it remains to be seen how Krutrim will overcome these challenges and maintain its commitment to innovation and accessibility.
In conclusion, Krutrim’s latest round of layoffs marks an interesting turning point for the company. The impact of this move on the company’s operations and overall trajectory will likely have significant repercussions in the coming months and years.