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Krutrim trims workforce again, lays off 20-25 employees in latest restructuring
AI startup continues organisational overhaul as it sharpens focus on cloud and enterprise AI
Bengaluru: India’s first AI unicorn appears to be tightening its own algorithm for growth. Krutrim has reportedly laid off around 20 to 25 employees in its second round of workforce reductions this year as the company continues to realign its business around artificial intelligence infrastructure and cloud services.
According to a report by The Economic Times, the latest job cuts have affected employees across the product and engineering teams. Earlier this year, the company had also reduced headcount in its sales, go-to-market and business operations functions as part of a broader organisational restructuring.
Responding to media queries, the company did not confirm the number of employees impacted. It said it regularly reviews its organisational structure to ensure its teams remain aligned with evolving business priorities as the company scales its operations.
The latest restructuring follows multiple workforce changes undertaken during 2025. In July last year, Krutrim reportedly eliminated more than 100 roles while several senior executives exited the company. A further round of layoffs in September affected around 50 employees in its linguistics division, including specialists working on regional language models.
The company has simultaneously shifted its strategic focus. In May, Krutrim repositioned itself as a domestic AI cloud services provider, signalling a stronger emphasis on AI infrastructure, cloud computing and enterprise solutions for the Indian market.
Despite the workforce reductions, Krutrim’s financial performance has improved. The company reported revenue of around Rs 300 crore in FY26, nearly three times higher than the previous financial year. It also posted its first annual profit, reporting a profit-after-tax margin of more than 10 per cent.
Founded by Bhavish Aggarwal, Krutrim became India’s first AI unicorn in January 2024 after raising US$50 million at a valuation of US$1 billion. Since then, the company has expanded its portfolio of AI models and cloud offerings while continuing to reshape its workforce and operations to support its evolving business strategy.
