Yellow.ai Layoffs
Industry Support · Location SF Bay Area · United States · Subscribe (RSS)
Yellow.ai has 2 publicly reported layoff rounds on record between March 1, 2023 and December 23, 2025. A total of about 300 employees were affected across these rounds.
Layoff history
Yellow.ai laid off more than 100 employees in December 2025, approximately 30% of its workforce, as the conversational AI startup repositioned itself around autonomous agentic technology. The company said the enterprise AI market had "fundamentally transformed with the emergence of agentic AI," reducing its need for legacy implementation and support roles. Engineering and product teams bore the brunt of the cuts at the Bengaluru-based company. It was the second round of reductions in 2025; the firm had also shed 40 to 50 employees in August. Yellow.ai had deferred or cancelled salary increments for the prior two years, and its India entity reported a marginal revenue decline in FY25, though management pointed to roughly 40% consolidated global growth as evidence the transition was gaining traction.
Reason: Shift from conversational AI to agentic AI, eliminating legacy support and implementation roles
Source: inc42.com
Yellow.ai disclosed a workforce reduction affecting its SF Bay Area operations in March 1, 2023. Approximately 200 roles were eliminated.
Source: inc42.com
Data for Yellow.ai is compiled from public WARN Act filings and reporting linked above. See our methodology.