Bhavish Aggarwal-founded AI startup Krutrim has reportedly laid off 20 to 25 employees in its latest round of restructuring, reducing its current workforce by nearly half, according to a report by The Economic Times.
The latest job cuts come just months after the company carried out an earlier restructuring exercise that primarily affected sales, go-to-market, and business operations teams. This time, the layoffs have reportedly extended to product and engineering functions, affecting employees responsible for developing the company's AI technology.
Responding to reports of the layoffs, a Krutrim spokesperson told India Today Tech: "Krutrim continues to be in an active phase of scaling its operations and, like any growing business, periodically reviews its team structure to align with evolving priorities. We do not have anything further to share on the specifics referenced in your query at this time."
The reported restructuring signals a shift in Krutrim's strategy. The company had initially outlined ambitious plans to build a comprehensive AI ecosystem in India, including developing its own foundation model and AI chips. However, it has since narrowed its focus towards AI cloud infrastructure and enterprise offerings.
Krutrim's current portfolio centres on products such as Krutrim Cloud and Maps, reflecting a more focused approach as AI companies worldwide seek to balance high development costs with sustainable business growth.
