Acko cuts 5% of workforce as insurer restructures around AI
Indian digital insurer Acko has reduced its workforce by around 5% as part of an organizational shift tied to AI adoption, according to reports. The company employed roughly 1,200 people as of March 2026, meaning the cuts affect approximately 60 employees.
Staff members losing their jobs will remain on the payroll through the end of June, giving them several months of severance.
Leadership changes accompany restructuring
Chief marketing officer Ashish Mishra is leaving the company after joining in August 2020. Nitin Khanna, who has spent more than seven years in marketing roles at Acko, will take over the position.
IPO plans drive cost discipline
The restructuring occurs as Acko prepares for a proposed initial public offering valued at $300 million to $400 million in fiscal year 2027. The company is in preliminary talks with bankers about combining fresh fundraising with secondary stake sales from existing shareholders.
Acko has raised more than $450 million from investors including Amazon, Accel, Elevation Capital, and Munich Re Ventures since its 2016 founding.
Business performance improving despite losses
In fiscal year 2025, Acko reported a consolidated net loss of Rs4.24 billion, down from Rs6.67 billion the previous year. Operating revenue increased to Rs28.36 billion from Rs21.06 billion.
The insurer serves more than 78 million customers and has issued over a billion policies. Its business has expanded beyond motor insurance into health coverage, including through its 2024 acquisition of OneCare.
This is Acko's second known round of layoffs. During the Covid-19 pandemic, the company cut 45 to 50 roles as a cost-control measure.
For insurance professionals, understanding how AI for Insurance affects organizational structure and operations has become essential. The shift toward AI Agents & Automation is reshaping how insurers allocate resources and staff.
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