Cogito’s Layoff of 177 Employees: The Inside Story


The corporate world is a dynamic and ever-changing landscape, with companies witnessing constant transformations and shifts in their organizational structures and workforces. While growth and expansion remain the ultimate goal for most businesses, sometimes the situation takes a turn for the worse, forcing companies to lay off their employees. Layoffs are a grim reality that many organizations face, owing to various factors such as organizational restructuring, mergers and acquisitions, economic downturns, and more. In this blog, we’ll be delving into the recent layoffs in the Indian startup ecosystem, with a focus on the data startup Cogito.

Company Introduction

Cogito is a New Delhi-based data startup that uses machine learning and artificial intelligence techniques to provide data insights to businesses, thereby enabling them to make informed decisions. Founded in 2010 by a team of industry veterans, the company has raised over $30 million in funding from top-tier investors, including OpenView Venture Partners, Romulus Capital, and Scale Venture Partners. Cogito has its headquarters in Boston and an engineering center in Pune, India, employing over 400 people.

Company History and Performance:

Cogito started its journey with a vision to leverage cutting-edge data technologies to revolutionize the way companies use data. Over the years, the company has established itself as a market leader in the data analytics space, catering to a diverse range of clients, including Fortune 500 companies and startups. Cogito’s innovative and intuitive approach to data analytics has won it several accolades and awards, including the prestigious Best AI/Machine Learning Startup Award at the 2021 India Digital Awards.

Reason for Layoffs

The news of the layoffs at Cogito came as a shock to many, with reports suggesting that the company had laid off 177 employees from its Indian center. The incident sparked protests and outrage among the affected employees and their families, who demanded an explanation from the company. It was reported that the layoffs were part of Cogito’s restructuring plan, aimed at optimizing its operations and cost structure. The company’s management stated that the decision was a difficult one but necessary to ensure the long-term sustainability of the business.

Number of Employees Laid Off

Cogito’s layoff of 177 employees constitutes around 44% of its Indian workforce, raising concerns about the impact on the affected employees and the future of the company. The layoffs affected a cross-section of employees from various departments, including engineering, product development, and data analytics.

Statement from Company Stakeholders

In response to the layoffs, Cogito’s CEO stated that the company remains committed to its employees and will do everything in its power to minimize the impact of the layoffs on its workforce. The CEO emphasized that the decision was not a reflection of the caliber of the laid-off employees and that the company would provide them with adequate severance packages and career support. Additionally, several investors and partners of Cogito expressed their support for the company’s decision to undertake the layoffs, citing the need to optimize the business and ensure its long-term success.


Layoffs are an unfortunate reality of the corporate world, and while they may be necessary to ensure business sustainability, they can have a significant impact on the affected employees and their families. As companies continue to evolve and adapt to the changing business landscape, it is essential to balance the organization’s goals with the wellbeing of employees. In Cogito’s case, the company’s decision to undertake the layoffs was a difficult one but necessary to ensure its long-term success. While the layoffs may have caused temporary disruptions, the company’s commitment to its employees and customers remains unwavering, and it is poised to emerge stronger from this period of transition.

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