Krutrim, India’s first artificial intelligence unicorn, has reportedly laid off around 20 to 25 employees in another round of workforce reductions as it sharpens its focus on AI infrastructure and cloud services.
According to The Economic Times, the latest layoffs have impacted employees across the product and engineering functions. This marks the company’s second round of job cuts this year. Earlier, Krutrim had reportedly reduced headcount in its sales, go-to-market and business operations teams as part of an organisational restructuring.
Responding to media reports, the company did not confirm the number of employees affected. It stated that it periodically reviews its organisational structure to ensure teams remain aligned with changing business priorities as the company continues to scale.
The latest move follows a series of workforce changes over the past year. In July 2025, Krutrim reportedly eliminated more than 100 positions while several senior executives also exited the organisation. Another restructuring exercise in September affected around 50 employees in its linguistics division, including professionals working on regional language AI models.
Alongside these changes, the company has been repositioning its business strategy. In May, Krutrim announced a greater focus on becoming an AI cloud services provider for the Indian market, with increased emphasis on artificial intelligence infrastructure, cloud computing and enterprise solutions.
Despite the workforce reductions, the company’s financial performance has strengthened. Krutrim reported revenue of around ?300 crore in FY26, nearly three times higher than the previous financial year. It also recorded its first annual profit, with a profit-after-tax margin of more than 10 per cent.
Founded by Bhavish Aggarwal, Krutrim achieved unicorn status in January 2024 after raising US$50 million at a valuation of US$1 billion. Since then, the company has continued expanding its AI models and cloud offerings while reshaping its workforce to support its evolving business strategy.
