Ola Krutrim cuts over 100 jobs in restructuring move: report

Ola Krutrim, an AI startup led by Bhavish Aggarwal, has laid off more than 100 employees, as reported by The Economic Times.

The layoffs primarily affect the company’s linguistics team amid a restructuring to align with new business priorities.

Previously, the company was hiring for roles in its linguistics team.

This team focused on AI training for Indian languages such as Tamil, Telugu, and Odia. However, layoffs reportedly began shortly after the launch of its AI assistant, Kruti, in June.

Sources cited by The Economic Times indicated that the company is facing funding delays and challenges in gaining traction for its products.

Documents referenced in the report attribute the layoffs to changing company priorities and external factors.

Ola Krutrim has also reduced its fundraising target to US$300 million from an earlier goal of US$500 million due to diminished investor interest.

When contacted for comment on the layoffs, Ola Krutrim said, “We urge you to refrain from publishing unverified reports that are not substantiated by accurate facts.”

🔗 Source: YourStory

🧠 Food for thought

1️⃣ AI layoffs reflect industry-wide skill mismatches, not just funding pressures

Krutrim’s layoffs of its linguistics team reflect a broader trend in India’s tech sector, where companies are restructuring due to skill mismatches rather than solely focusing on cost-cutting.

TCS, India’s largest IT company, recently laid off 12,000 employees, representing 2% of its workforce. CEO K Krithivasan stated that despite training over 550,000 employees in digital skills, many senior professionals struggle to adapt to new technologies1.

This indicates that Krutrim’s decision to cut its linguistics team shortly after launching its AI assistant Kruti highlights the challenge many AI companies face in aligning their workforce with rapidly evolving technical requirements.

The trend is not limited to individual companies. Over 94,000 tech workers globally lost their jobs in the first half of 2025, including major cuts at Microsoft (15,000 employees) and Intel (24,000 employees)2.

These layoffs are driven not just by AI automation but also by the need for different skill sets as companies adjust their technical strategies and product focus.