Krutrim, Ola’s AI Undertaking, Suffers From Turbulence With 50 Layoffs Afresh

It seems only yesterday when Ola – a mobility and technology conglomerate in India, operating services, such as cabs and bikes, electric vehicles, and even as far as business travels – unveiled its newest developments for its Krutrim, its AI platform, but now, it is suffering from shocking turbulences.

The new developments for Krutrim is about specifically building a vertically integrated technology stack that makes AI more accessible, affordable, and scalable for businesses in India.

Today, ridesharing media have reported that Krutrim is moving forward with fresh new layoffs, affecting 50 employees, its third round so far since June.

3rd round of layoffs

Those affected in this third round of layoffs since June are the employees in its linguistic division. The layoffs are being blamed on the ongoing turbulence in this startup as it seeks to balance the ambitious project developments with operational challenges.

The report stated that the recent job cuts primarily affected teams and organizations in Krutrim’s data annotation and linguistics work. Those working in the text-to-speech team, including senior leaders, were also let go. This has paralyzed the entire organization as the linguistics division is central to Krutrim’s efforts in building multilingual capabilities.

‘Strategic realignment’

Since June, Krutrim has already let go over 200 people, which includes both rank-and-file employees and senior leaders. The media stated as well that at least six executives, which include directors and heads of engineering, finance, and architecture, have also resigned, not laid off, since April 2025.

The reason for the layoffs, as the company spokesperson, would explain, is described as part of a “strategic realignment.” They further noted that the specific data annotation project, which required in-house linguistics expertise, had reached completion, making parts of the team already redundant.

This was also not a good time for the layoffs, as Krutrim is presently developing its flagship large language model, Krutrim 3, poised to rival existing global AI systems.

However, the media has gotten information that the company is facing delays in funding and slow adoption of its early product offerings, fueling speculations about whether the AI venture of Ola can keep its innovation pace while undergoing repeated restructuring.

What’s next for the company, for you?

With this round of layoffs, insiders are saying that Krutrim may look at outsourcing some language-related work instead of keeping large in-house teams. There are no official information yet about whether further job cuts will happen someday in the near future.

So, what should you do if you’re part of those laid off? Human resources experts recommend that after being laid off, you must review the separation packaging and understand benefits like severance pay, healthcare continuation, and unused leave payouts.

You may also request written documentation, confirm final paycheck details, and clarify references or outplacement services offered. You should also be able to fill unemployment benefits as soon as you could.

Next steps also involve updating resumes and LinkedIn profiles to ensure readiness for new opportunities. At the same time, it is also recommended that you seek career counseling, networking, and enrolling in upskilling or reskilling programs to provide you with strong foundations.