AI unicorn Gupshup optimises post-acquisition teams, lay off 300 employees over 18 months
Conversational AI company Gupshup has reduced its workforce by a net 300 employees over the past 18 months, the company confirmed, as part of a broader effort to integrate its acquisitions, optimise operations, and focus on sustainable growth.
The company clarified that these changes are not the result of any single downsizing exercise, but rather a result of ongoing consolidation efforts following its rapid expansion since 2021. During this period, Gupshup scaled its team by nearly seven times to 1,500 employees, following the acquisition of five firms—Dotgo, Knowlarity, Active.ai, AskSid, and OneDirect—as well as significant lateral hiring.
“As Gupshup continues to innovate and drive AI-led customer engagement, we are also focusing on efficiency and profitability. These organisational changes, while difficult, demonstrate our ability to drive long-term profitable growth and better position us to lead globally in the Conversational AI landscape,” the company said in an official statement.
While media reports earlier estimated the number of affected employees to be closer to 500, Gupshup stated that the net headcount reduction stands at 300. The company emphasized that the restructuring was not limited to staff from acquired firms, and was instead part of a strategic alignment across the business.
All impacted employees were offered notice period pay along with continued employment benefits. Gupshup reiterated that all conversations were handled with empathy, support, and in adherence to HR protocols.
The workforce consolidation comes in the wake of Gupshup’s aggressive growth phase, which was fuelled by a $100 million Series F round in 2021 led by Tiger Global. The investment helped elevate the firm’s valuation to $1.4 billion and accelerated its push into AI-driven customer engagement solutions.
Despite internal restructuring, the company continues to post strong numbers. Gupshup reported a 55% year-on-year revenue increase in FY23, with earnings touching £300 million. It is now aiming to double that figure in FY24.
Originally launched as an SMS-based messaging service in 2004, Gupshup has since evolved into a key player in the generative AI ecosystem, powering conversational interfaces for commerce, customer service, and marketing.
Although market speculation points to another round of layoffs potentially happening by mid-2024, with 100–300 more roles possibly affected, Gupshup has denied these claims and affirmed that it remains a profitable organisation with no immediate plans for further reductions.
Looking ahead, the company is preparing for a possible public listing. CEO Beerud Sheth recently confirmed strong investor interest and said Gupshup is actively working on shifting its legal base to India from the US, signalling serious intent toward an IPO.
As Gupshup repositions itself for its next phase, the company’s focus remains on scaling innovation and operational excellence, while solidifying its leadership in a fast-evolving AI landscape.