Acko cuts workforce amid AI-led restructuring – report

Indian digital insurer Acko has reduced its workforce by approximately 5% as part of an AI-led restructuring effort. The company confirmed the cuts while working toward a proposed initial public offering. Impacted employees are expected to remain on the company's payroll until the end of June.

The restructuring comes as Acko implements artificial intelligence systems to improve operational efficiency. The company did not disclose the exact number of employees affected or which departments were most impacted. Acko is a digital insurance provider that has been expanding its offerings in the Indian market.

The workforce reduction follows a pattern of AI-related restructuring in various industries as companies seek to optimize operations. Acko's move aligns with its preparation for going public, where demonstrating efficiency improvements can be important for investor confidence. The company continues operations with its remaining workforce while transitioning affected employees through June.