Ola Krutrim, the artificial intelligence startup founded by Bhavish Aggarwal, has laid off more than 100 employees in its second round of workforce reduction, primarily affecting its linguistics division.
The layoffs follow a smaller round in June 2025, and come just weeks after the launch of Krutrim’s flagship AI assistant, Kruti, which supports 13 Indian languages and is positioned as a homegrown alternative to global platforms like ChatGPT and Gemini.
The company stated that the decision was part of a strategic realignment aimed at building leaner, more agile teams.
A spokesperson for Krutrim emphasized that the move reflects evolving business priorities and a long-term vision to develop India’s own full-stack AI platform.
Ola Krutrim Linguistics Team Hit Hard as Kruti’s Training Nears Completion
The layoffs have disproportionately impacted linguists hired for full-time roles across 10 Indian languages, including Tamil, Telugu, Odia, and Marathi.
Many of these employees had relocated to Bengaluru earlier this year to join Krutrim’s AI training and evaluation teams.
Sources familiar with the matter indicated that Kruti’s training is nearly complete, reducing the need for a large linguistics workforce.
The linguistics team had reportedly grown to around 600 employees before the recent cuts.
Funding Delays and Product Traction Challenges
Krutrim’s restructuring is also linked to funding delays and slower-than-expected product adoption.
The company had initially planned to raise $500 million, but revised its target to $300 million due to tepid investor interest.
It last raised $50 million from Z47 Partners in 2024, which helped it achieve unicorn status.
Despite ambitious plans—including a ₹2,000 crore investment into AI development and a pledge to scale this up to ₹10,000 crore—Krutrim’s large language model and cloud services have struggled to gain traction.
Several startups have opted for more mature platforms offered by global hyperscalers.
Ola Krutrim Leadership Churn Adds to Operational Challenges
The layoffs come amid continued leadership churn at Krutrim.
Nearly a dozen senior executives exited the company in 2024, with additional departures reported in early 2025.
These exits have raised concerns about internal stability and execution capability.
Krutrim has urged media outlets to avoid publishing unverified reports, but has not denied the layoffs.
The company maintains that the restructuring is aligned with its commitment to efficient capital deployment and business agility.
Kruti’s Role and Future Outlook
Kruti, Krutrim’s agentic AI assistant, is designed to perform tasks such as booking cabs, paying bills, and ordering food.
It operates in 13 Indian languages and uses a hybrid architecture combining proprietary models with open-source systems.
Krutrim aims to embed Kruti into everyday Indian digital life, especially for regional and non-English-speaking users.
While Kruti remains central to Krutrim’s product strategy, the recent layoffs suggest a shift from team expansion to resource optimization.
The company’s future trajectory will likely depend on its ability to secure funding, improve product adoption, and stabilize leadership.
Note: We are also on WhatsApp, LinkedIn, and YouTube, to get the latest news updates. Subscribe to our Channels. WhatsApp– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
