SaaS major Gupshup denies layoffs; affirms decline in workforce amid restructuring

Conversational AI platform Gupshup has denied recent reports alleging significant layoffs within the company.

According to an Inc42 report citing sources, the firm had let go of around 200 employees in a restructuring exercise earlier this month. It further added that in December 2024, Gupshup had conducted a round of layoffs that impacted about 300 employees across departments. 

In a statement shared with YourStory, Gupshup stated, “Over the past 18 months, through a combination of additions and reductions, our net employee count has been reduced by 300. As always, we handle every discussion with empathy and respect, providing support and following HR processes. All impacted employees will receive notice period pay along with continued employment benefits.”

The Inc42 report also suggested that the layoffs largely affected employees from the five companies Gupshup acquired between 2021 and 2022. However, the company has denied this, stating that the layoffs were not limited to the acquired firms.

“Since 2021, Gupshup has grown its team 7X to 1,500 employees through the strategic acquisition of five companies and lateral hiring. This expansion fueled our global footprint, accelerated innovation, and enabled us to launch new products while scaling operations rapidly. As we integrated these companies, it was natural to consolidate teams and optimise for efficiency across the organisation,” it added. 

Responding to queries about speculation of another potential round of layoffs in June, as cited in the report, the San Francisco-based firm denied these claims, stating that it has no such plans.

In February, Gupshup forayed into agentic AI with the launch of an AI Agent Library, including 15 pre-built and customisable AI agents with industry-specific capabilities. The library of AI agents aims to assist enterprises in improving customer experience, increasing operational efficiency by reducing time-to-market, and driving revenue growth.

Last year, US-based asset management company Fidelity Investments marked down the fair value of its stake in Gupshup by more than half, valuing the company at about $500 million. 

Fidelity Emerging Markets Equity Central Fund, which acquired a stake in Gupshup worth $1.02 million in August 2021, reduced the value of the stake to $365,893 as of June 2024, the company's filings with the US Securities and Exchange Commission showed.