AI unicorn Krutrim has laid off more than 100 employees in its second round of job cuts, according to a report by The Economic Times. The move is part of a broader strategic realignment aimed at building leaner teams and optimizing resource allocation.
The layoffs have significantly affected Krutrim’s linguistics division, which had only recently expanded. Prior to the cuts, the linguistics team reportedly comprised around 600 members, indicating a notable downsizing within the department.
This marks the second wave of layoffs at Krutrim in recent months. In June, the company had already trimmed over a dozen roles as part of an earlier cost-cutting effort.
Founded with a vision to revolutionize artificial intelligence, Krutrim shot to prominence after raising approximately $75 million and entering the coveted unicorn club in January 2024. Its key investors include Z47 (formerly Matrix Partners India), the Sarin Family, and others.
The company was recently rumored to be exploring a new funding round, but Krutrim officially denied any such talks.
The latest restructuring comes just weeks after the launch of Kruti, the company’s next-generation agentic AI assistant. Kruti is a multimodal Gen 2 assistant capable of analyzing text, voice, images, and files to generate intelligent responses and detailed reports — a significant step in Krutrim’s product innovation roadmap.
While the layoffs reflect the ongoing volatility within the tech and AI sectors, Krutrim maintains that the changes are aligned with long-term strategic goals and the need for operational efficiency as it continues to scale its technology offerings.
