Ola’s AI Division Krutrim Cuts 50 Linguistics Jobs Amid Restructuring

TLDRs:

• Krutrim, Ola’s AI division, laid off 50 linguistics staff in its third round since June.
• Over 200 employees have departed Krutrim amid leadership exits and project realignments.
• Layoffs follow funding delays and slow traction for the Krutrim 3 language model.
• The move reflects wider AI industry trends of automation reducing human roles in development.

Ola’s artificial intelligence division, Krutrim, has cut around 50 employees from its linguistics team, marking the company’s third round of layoffs since June.

Sources familiar with the matter confirmed that these reductions are part of a broader strategic realignment as the company seeks to streamline operations amid challenges in funding and product adoption.

The layoffs primarily affected key personnel in the text-to-speech project, including team leaders and transcribers specializing in regional languages like Bengali, Malayalam, and Punjabi. With these departures, Krutrim’s linguistics team has been significantly reduced, highlighting the company’s shift in focus away from human-driven data annotation toward AI-powered solutions.

Third Layoff Hits Krutrim Team

The recent round brings the total number of Krutrim employees affected since June to over 200, combining both layoffs and voluntary exits.

In addition to staff reductions, more than six senior executives have left the division since April 2025, including directors and heads of engineering, finance, and architecture.

These departures coincide with the ongoing development of Krutrim 3, the division’s largest large-language model project to date.

Leadership Departures Add Pressure

A company spokesperson explained that the layoffs come after a data annotation project involving in-house linguistics concluded, making several roles redundant.

Despite these cuts, Krutrim remains committed to its AI ambitions, though the departure of experienced team leaders raises questions about the division’s capacity to maintain quality and cultural relevance in its multilingual applications.

Industry observers note that Krutrim’s restructuring is not an isolated case. AI startups globally have struggled with execution, often failing to deliver promised returns despite substantial investment. Research shows that nearly 95% of enterprise AI pilots yield no measurable benefit, with operational and strategic execution being the main stumbling blocks rather than technology itself.

The broader tech sector has faced over 22,000 job cuts in 2025 alone, with AI-related layoffs surpassing 10,000 in July. Krutrim’s third round of reductions mirrors this trend, illustrating how companies reassess investments in AI amid funding delays and slow product traction.

AI Ambitions Meet Execution Challenges

Krutrim’s decision to cut human linguists while simultaneously advancing its AI model development underscores a paradox in modern AI workflows. Many firms are increasingly automating tasks that previously required specialized human expertise to reduce labor costs.

However, AI systems, especially those handling multilingual and culturally nuanced content, still require human oversight to ensure accuracy and effectiveness.

For Krutrim, this strategy reflects a belief that AI development has progressed beyond extensive human input, though it carries inherent risks. Analysts warn that removing critical human expertise could impact long-term performance, particularly in text-to-speech and other linguistics-dependent applications.

 

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