Krutrim, the AI division of Ola, has laid off approximately 50 employees from its linguistics team—a significant move marking the third round of layoffs since June. The affected staff include team leads and transcribers specialising in regional languages like Bengali, Malayalam, and Punjabi.The Economic Times
This latest downsizing follows two earlier rounds of cuts:
- Second round (July): Over 100 linguistics roles—including those hired just months earlier—were eliminated as part of a broader strategic realignment toward leaner, more agile teams
- First round (June): Dozens of positions were cut, mainly from linguistics, after completion of high-volume AI assistant training tasks.
In total, more than 200 employees have exited Krutrim this year due to layoffs and leadership departures.
The company explains these layoffs as part of a strategic realignment—citing the completion of the data annotation phase and a shift in priorities toward building its ambitious Krutrim 3, a multibillion-parameter large language model, as well as investments in advanced infrastructure like semiconductors and data centers.
Why It Matters
| Key Factor | Insight |
|---|---|
| Strategic Refocus | Krutrim is reallocating resources as its Kruti-powered AI training phase ends and as attention shifts toward developing Krutrim 3 and hardware capabilities. |
| Operational Efficiency | The company is aiming to build leaner, more agile teams, potentially to preserve capital in light of funding delays and product traction challenges. |
| Market Pressure | Amid global tech volatility, Krutrim’s restructuring mirrors industry trends of tightening operations as startups seek sustainable growth paths. |
| Future Roadmap | Despite cuts, Krutrim is pushing ahead with its technology roadmap—focusing on AI model development, semiconductors, and expanding its AI ecosystem. |
