Chennai-based SaaS firm Kissflow has laid off approximately 45-50 employees, representing 15% of its workforce, across its sales, marketing, and product development departments. This decision comes as part of the company’s annual performance review and product realignment strategies.
Reasons Behind the Layoffs
According to a report by Moneycontrol, the layoffs were driven by both product shutdowns and the annual performance review process. Kissflow’s founder and CEO, Suresh Sambandam, confirmed to Inc42 Media that the company had to let go of employees as part of a strategic shift from land-motion procurement to expand motion, aiming to enhance customer acquisition across their product range.
“We let off around 20-25 people because we moved away from land-motion procurement to expand motion. This was done to increase customer acquisition across our products. At the same time, we do annual performance reviews every two to three years, and around 20 people were let go due to this,” said Sambandam.
Impact on Workforce
Prior to the layoffs, Kissflow employed over 400 staff members. The job cuts, which occurred over the past two months, affected employees in India, the US, and the UAE. In the US and UAE, fewer than five employees were impacted.
Company Background and Evolution
Kissflow, initially launched at Google.io in 2012, began as a Minimum Viable Product (MVP) to test product-market fit. Initially designed as a workflow solution for Google Suite users, it addressed needs such as leave approval, tax filing, and insurance claims automation. Over time, the startup evolved into a sector-agnostic tool, helping businesses integrate their operations with Google Suite.
Today, Kissflow offers cloud-based no-code and low-code work management products, serving over 1 million users across 160 countries. Despite its significant user base, the company remains bootstrapped, having not raised external funding.
Industry Context and Technological Shifts
The SaaS industry is currently undergoing significant changes, largely driven by advancements in generative AI. Established IT services companies like Tata Consultancy Services (TCS) and Infosys are integrating AI capabilities into their offerings, signaling a shift towards leveraging generative AI to enhance operational efficiency and offer innovative products to customers.
Startups like Avaamo are also playing a crucial role in this transformation. Their GenAI solutions are being adopted by major enterprises such as Wipro, highlighting the increasing importance of AI-driven technologies in optimizing business operations.
As generative AI adoption accelerates, enterprises are focusing on using AI to streamline workflows, enhance customer experiences, and drive operational efficiency. However, there is a cautious approach towards this technology, with companies prioritizing data integrity, privacy, and compliance while exploring GenAI solutions.
