Why Skit.ai’s Layoffs Are Causing Industry Debate


Skit.ai, a Bengaluru-based SaaS startup, recently made the headlines after announcing layoffs of 115 employees. The decision has caused a stir in the industry, sparking a debate on the reasons behind the layoffs and their impact on the company and the employees.

Company Overview

Skit.ai is a leading provider of conversational AI technology that enables businesses to automate customer interactions through voice and messaging. The platform uses natural language processing (NLP) and machine learning (ML) to understand and respond to customer queries.
The company was founded in 2018 by four co-founders with a vision to create a platform that simplifies the way businesses interact with customers. Skit.ai has quickly gained traction in the market, earning a reputation as a reliable and scalable solution for customer engagement.

Funding and Investors

Skit.ai has raised a total of $28 million in Series B funding, led by WestBridge Capital, with participation from existing investors Accel, Sequoia India, and Blume Ventures. The funding was aimed at expanding the company’s product offerings, accelerating its growth, and expanding its customer base.
The investors were impressed by Skit.ai’s innovative approach to customer interaction and its ability to deliver tangible results to businesses. They believed that the company had the potential to become a market leader in the conversational AI space.

Performance and Growth

Skit.ai has been performing well in the market, with a growing customer base and increasing revenues. The company’s innovative technology has attracted several clients across industries, including e-commerce, healthcare, finance, and telecom.
Skit.ai’s platform has been well-received by customers, who appreciate its ease of use, scalability, and the ability to deliver personalized customer interactions. The company has been able to differentiate itself from competitors by offering a comprehensive suite of features, including virtual assistants, chatbots, and voice assistants.

Reasons for Layoffs

The decision to lay off 115 employees came as a surprise to many, given Skit.ai’s recent success and funding rounds. The company attributed the layoffs to a strategic realignment of resources aimed at optimizing its cost structure and streamlining operations.
Skit.ai stated that the layoffs affected predominantly support staff and a few engineering roles, which were deemed non-critical to the company’s operations. The company emphasized that the decision was not a reflection of its financial performance or growth prospects, but rather a proactive measure to ensure long-term sustainability and profitability.

Impact on Employees

The news of the layoffs has understandably caused distress among Skit.ai employees and their families. The affected employees were given a notice period of one month, during which they would receive full pay and benefits.
The company has also offered these employees support in finding new job opportunities, including resume building, skill development, and referrals. The company has acknowledged their contributions and expressed gratitude for their efforts in building Skit.ai into a successful enterprise.

Stakeholder Views on Layoffs

Skit.ai’s decision to lay off employees has drawn reactions from various stakeholders, including customers, investors, and industry experts. While some have expressed concern over the impact on Skit.ai’s reputation and employee morale, others have held a more pragmatic view of the decision.
WestBridge Capital, Skit.ai’s lead investor, has expressed support for the decision, stating that it is in line with the company’s long-term goals and growth strategy. The investor has emphasized that the decision reaffirms the company’s commitment to delivering value to its customers and shareholders.


The layoffs at Skit.ai have sparked a debate on the reasons behind the decision and their impact on the company and the employees. While the decision has been met with mixed reactions, it is clear that Skit.ai’s management believes that it is in the best interest of the company’s long-term sustainability and growth.
As Skit.ai continues to grow and expand its offerings, it remains to be seen how the decision will impact its reputation and future prospects. However, the company has a strong track record of innovation and customer satisfaction, which suggests that it is well-positioned to overcome this challenge and emerge stronger.

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