Digital insuretech firm Acko has let go of around 60 employees, or roughly 5 per cent of its workforce, as part of a broader structural realignment aimed at embedding artificial intelligence (AI) deeper into its operations, multiple people familiar with the matter said.
The affected employees are expected to remain with the company until the end of June, they added.
The move is part of Acko’s shift toward AI-native workflows and greater automation across functions.
“Approximately 60 people out of the 1,200-person organisation will transition out as Acko realigns its teams around AI-first workflows, performance benchmarks, and the skill sets required for our next phase of growth,” said a source close to development.
“This is not a cost-cutting exercise,” the source added.
The restructuring comes alongside a senior leadership change, with chief marketing officer Ashish Mishra stepping down after more than five years at the company. Mishra, who joined Acko in August 2020, is currently serving his notice period.
He is expected to be succeeded by Nitin Khanna, a long-time executive who has spent over seven years at Acko across marketing roles, the people cited above said.
Founded in 2016 by Varun Dua and Ruchi Deepak, Acko has raised over $450 million from investors including Amazon, Accel and Elevation Capital, among others.
The company has been narrowing losses while scaling revenue. In FY25, Acko reduced its consolidated net loss to ₹424 crore from ₹667 crore a year earlier, while operating revenue rose to ₹2,836 crore from ₹2,106 crore.
Legacy players
Acko operates in a competitive insurance market, taking on legacy players such as Tata AIG and Bajaj Allianz, as well as digital-first platforms including Go Digit Insurance and PolicyBazaar.
The latest restructuring underscores a broader shift among new-age insurers toward leaner, tech-led operating models, with AI increasingly central to underwriting, claims processing and customer engagement.