August 10, 2026 at 03:03 AM 2 min readaiAI Insights
Ola Group's Krutrim Cuts Workforce in Second Restructuring Round This Year
The startup is narrowing its focus to cloud infrastructure and enterprise services while maintaining its hardware roadmap.
[Strategic Pivot Underway]:
Ola Group's artificial intelligence startup, Krutrim, has reportedly initiated its second workforce restructuring round of the year. The company has reduced its headcount by approximately 20 to 25 employees, impacting teams across product and engineering. This follows an earlier restructuring phase that primarily affected sales, go-to-market, and business operations. The Bhavish Aggarwal-led firm is now narrowing its strategic focus toward cloud infrastructure and enterprise services to streamline its operations.
[Financial Performance Context]:
Despite the workforce reduction, the company has shown significant financial growth. Krutrim reported revenues of approximately Rs 300 crore in FY26, representing a threefold increase compared to the previous fiscal year. Furthermore, the startup achieved its first annual net profit, maintaining a profit after tax margin exceeding 10%. This financial stability provides a foundation for the company's ambitious hardware and software roadmap as it navigates the competitive AI landscape.
[Future Hardware Roadmap]:
The company remains committed to its long-term product development cycle. Krutrim plans to launch its first AI chip, Bodhi 1, in 2026, followed by the more advanced Bodhi 2 in 2028. Additionally, the firm is developing a cloud-native CPU named Sarv 1 and an Edge AI chip, Ojas, specifically designed for Ola Electric vehicles. These initiatives are central to the company's goal of building a vertically integrated AI stack, positioning it as a key player in India's domestic technology hardware sector.
Pulse Intelligence
Context & ImpactContext & Background
- Krutrim previously conducted a restructuring round focused on sales and business operations.
- The company reported a threefold revenue increase to Rs 300 crore in FY26.
- Krutrim has achieved its first annual net profit with a margin exceeding 10%.
Key Consequences
- Streamlined focus on cloud infrastructure and enterprise services may accelerate product delivery.
- Development of proprietary AI chips could reduce reliance on imported hardware for Ola's ecosystem.
- Potential for increased competition in the domestic AI hardware and cloud services market.
Market & Economic Impact
The focus on cloud and hardware could improve long-term margins for the Ola Group, though short-term sentiment may be cautious due to layoffs.
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