Ola’s artificial intelligence unit, Krutrim, has carried out its third round of layoffs since June, cutting close to 50 employees from its linguistics division. The development, first reported by The Economic Times, underscores ongoing turbulence at the AI startup as it seeks to balance ambitious product development with operational challenges.
According to the report, the latest job cuts primarily affected staff involved in Krutrim’s data annotation and linguistics work. Several members of the text-to-speech team, including senior leaders, were among those let go. The decision significantly reduced the linguistics division, which had been central to Krutrim’s efforts in building multilingual capabilities.
A company spokesperson confirmed the layoffs, describing them as part of a “strategic realignment.” The spokesperson said the specific data annotation project, which required in-house linguistics expertise, had reached completion, making parts of the team redundant.
This marks the third wave of layoffs in less than three months. Since June, Krutrim has seen over 200 departures, a number that includes both rank-and-file employees and senior leaders. Reports suggest at least six executives, including directors and heads of engineering, finance, and architecture, have resigned since April 2025.
The cuts come as Krutrim continues to develop its flagship large language model, Krutrim 3, positioned as a rival to existing global AI systems. However, according to Economic Times, the company has faced delays in funding and slow adoption of its early product offerings. This has fuelled speculation about whether Ola’s AI venture can maintain its pace of innovation while undergoing repeated restructuring.
Ola founder Bhavish Aggarwal has pitched Krutrim as a key driver of India’s AI ambitions, aiming to build homegrown models capable of supporting local languages and industries. While the vision has drawn attention, execution challenges have persisted.
With the latest round of layoffs, insiders suggest Krutrim may seek to outsource some language-related work instead of maintaining large in-house teams. The company has not disclosed whether further job cuts are expected.
The reshuffle comes against a broader backdrop of uncertainty in India’s AI and tech startup sector. Several firms have slowed hiring or trimmed teams in recent months as they navigate slower funding cycles and pressure to prove commercial viability.
For Krutrim, the coming months may prove pivotal. Success with Krutrim 3 could reinforce its position as a domestic AI pioneer. But without stabilising its workforce and leadership, analysts caution the company may struggle to scale at the pace envisioned.