Overview

• Kutrim laid off over 100 staff on July 28 in its second round of job cuts this year, with most departures coming from its linguistics division.
• The decision follows June’s launch of the multimodal AI assistant Kruti, which has completed approximately 80% of its training phase and reduced the need for language specialists.
• A company spokesperson said the layoffs are part of a strategic realignment to build leaner, more agile teams and optimize capital deployment toward full-stack AI development.
• Sources tell The Economic Times that reported funding delays and slower-than-expected product traction have prompted Krutrim to recalibrate its operations.
• Earlier in 2025, Bhavish Aggarwal committed ₹2,000 crore to launch Krutrim AI Labs, secured $50 million from Z47 Partners to reach unicorn status, and plans to raise funding to ₹10,000 crore next year.