Bhavish Aggarwal’s AI venture, Krutrim, has initiated another round of layoffs, letting go of over 100 employees, mainly from its linguistics division. This marks the second wave of job cuts in recent weeks, following the rollout of its flagship AI assistant, Kruti, promoted as India’s response to ChatGPT and Google Gemini.
The company attributed the move to a “strategic realignment” focused on building “leaner, more agile teams,” according to a report by The Economic Times. The layoffs have primarily impacted linguists working on 10 Indian languages, many of whom had recently relocated to Bengaluru for the role. These cuts come at a time when Krutrim is nearing the completion of language model training for Kruti, raising questions about the company’s long-term operational strategy.
While Krutrim had been on a fast-growth track, recent developments suggest mounting internal and external challenges. Fundraising delays, weak product traction, and lukewarm investor sentiment have reportedly forced the company to revise its funding goal from $500 million to $300 million.
In early 2024, Krutrim reached unicorn status after securing $50 million in funding from Z47 Partners, and announced ambitious plans to invest ₹10,000 crore in AI innovation. However, the optimism has since been tempered by internal instability. Over the past year, close to a dozen senior executives have left the organization, further fueling concerns about leadership and direction.
Despite these setbacks, Krutrim remains committed to Kruti, branding it as India’s first agentic AI assistant capable of performing a variety of tasks such as cab bookings and bill payments. The company continues to position Kruti as a uniquely Indian offering in a market increasingly dominated by international tech giants like OpenAI and Google, as well as emerging domestic competitors such as Sarvam AI and CoRover.ai.
The recent layoffs reflect a broader restructuring effort as Krutrim aims to streamline operations and weather the competitive and financial pressures of the rapidly evolving AI landscape in India.
