GupShup

Conversational AI company Gupshup has laid off at least 100 employees in a recent cost-cutting round, as confirmed by the company. This move, part of an effort to optimize its cost structure and build a leaner foundation, comes just four months after nearly 200 employees were let go in a previous round. The layoffs, which impacted junior developers among others, were conducted without severance packages; affected staff were asked to serve a 60-day notice period or leave without compensation. Gupshup, which operates in the enterprise tech and conversational AI industry and is planning an IPO in the next 12-24 months, stated it is leveraging automation to drive efficiency and meet financial goals ahead of important corporate milestones. The company, founded in 2004 and based in San Francisco and Mumbai, has transitioned from SMS and cloud telephony to a conversational AI platform focused on enterprise solutions.

Conversational AI unicorn Gupshup has laid off nearly 500 employees over the past several months, including about 300 in December 2024 and another 200 earlier this month, as part of restructuring efforts to improve efficiency and profitability. The company, valued at $1.4 billion in 2021 and backed by investors like Tiger Global, stated these organizational changes aim to drive long-term profitable growth and strengthen its position in the global conversational AI market. While sources indicated the layoffs primarily affected employees from companies acquired between 2021 and 2022, Gupshup disputed this concentration. The firm, which has raised about $484 million, claims a net headcount reduction of 300 over the last 18 months and denies plans for further layoffs.