AI Impact: Tech Layoffs & GoSats $5M Funding

Global tech companies are reducing their workforce, citing automation and restructuring as primary drivers. Experts suggest that artificial intelligence may be used as a justification for layoffs as companies adjust their cost structures to fund capital-intensive transitions to AI-driven models.

Oracle is reportedly reducing its employee base by up to 30,000 globally, with India expected to account for 4,000 of these layoffs. Atlassian recently declared a 10% workforce reduction, while Block has cut its workforce by up to 40%, attributing the decision to AI efficiency gains.

These job cuts appear to be motivated by capital reallocation, as tech giants invest extensively in data centers and hardware to fulfill contracts for AI. Consequently, companies are streamlining legacy operations and software teams to accumulate capital for GPUs, specialized data engineering teams, and power grids.

Skeptics argue that AI is being used as a cover for cost pressures or corrections of pandemic-era overhiring. Big tech companies may be under pressure to operate with leaner headcounts, and framing job cuts as AI-related can project an image of efficiency.

In other news, beauty ecommerce giant Nykaa anticipates reporting net revenue growth in the late twenties for the fourth quarter of FY26. The net revenue growth for the full FY26 is expected to be at the upper end of mid-twenties. Nykaa is reportedly in talks to acquire a majority stake in Deepika Padukone-owned beauty and personal care brand 82°E.

Fino Payments Bank has appointed Abhilash Ankathil, former RBI executive, as its new chief compliance officer (CCO) for a three-year term, following Aashish Pathak’s resignation. This change occurs shortly after the DGGI arrested Rishi Gupta, the company’s MD, in connection with an alleged ₹840 GST evasion case.

Bitcoin rewards startup GoSats has secured nearly ₹47 Cr in its Series A round, led by US-based VC firm Konvoy, to expand its user base to 1 Mn, broaden its product offerings, enhance its tech capabilities, and increase hiring. Founded in 2020, GoSats allows users to redeem cashback for Bitcoins and gold rewards. The startup has raised $5 Mn to date and partners with companies such as Flipkart, Swiggy, and Nykaa, disbursing rewards worth ₹40 Lakh per month to 80,000 monthly active users.

Beauty marketplace Kult is facing a crisis with unpaid employees and vendors, as governance issues resurface. Only about ₹50 Cr of the ₹185 Cr Series A funding announced last year was invested. The company’s FY25 revenue was ₹27.5 Lakh against losses of ₹3.2 Cr.

Spacetech startup SatLeo Labs has raised approximately ₹20.5 Cr in its seed round, led by Unicorn India Ventures, to advance its thermal satellite mission and develop its AI-powered thermal intelligence platform. Founded in 2023, SatLeo Labs builds satellites for thermal and visual imaging of Earth. With the latest round, SatLeo Labs has raised $5.5 Mn to date.