E-Commerce Start-Up Dukaan Lays Off 90 Per Cent Workers, Replaces Them With AI ChatBot

Dukaan CEO Suumit Shah explained the rationale behind the decision saying that the company is going to focus on profitability as the customer support costs have been reduced by 85 per cent.

When questioned by a Twitter user about the support offered to the laid-off staff, Dukaan CEO requested them to refer to his LinkedIn post, emphasizing the difficulty of the decision.

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Founder and CEO of e-commerce start-up Dukaan, Suumit Shah on Monday said that the company has laid off 90 per cent of its staff, replacing them with an artificial intelligence (AI) chatbot. In a tweet thread, Shah explained the rationale behind the decision, saying that the company is going to focus on profitability as the customer support costs have been reduced by 85 per cent, and resolution time went down from over two hours to three minutes after the AI chatbot came in.  

"We had to lay off 90 per cent of our support team because of this AI chatbot. Tough? Yes. Necessary? Absolutely," Shah tweeted.

"Given the state of economy, startups are prioritising "profitability" over striving to become "unicorns", and so are we," he added.

We had to layoff 90% of our support team because of this AI chatbot.

Tough? Yes. Necessary? Absolutely.

The results?

Time to first response went from 1m 44s to INSTANT!
Resolution time went from 2h 13m to 3m 12s
Customer support costs reduced by ~85%

Here's how's we did it 🧵

— Suumit Shah (@suumitshah) July 10, 2023

Several Twitter users criticised the tweet, deeming it insensitive.

In his explanation, Shah introduced Lina, the AI assistant that effectively replaces generic and delayed responses, addresses limited resource availability, and improves communication. Following a series of 12 tweets, he also said that the company is actively hiring for various positions.

When questioned by a Twitter user about the support offered to the laid-off staff, he requested them to refer to his LinkedIn post, emphasizing the difficulty of the decision.

"As expected, 'someone' will get offended on behalf of 'someone else', so I had this reply ready: Assistance ke bare mein jab Linkedin pe post karunga tab dekh lena mere dost, yahaan Twitter pe log "profitability" dekhte hai "sympathy" nahi", Shah tweeted.

As expected, 'someone' will get offended on behalf of 'someone else', so I had this reply ready:

Assistance ke bare mein jab Linkedin pe post karunga tab dekh lena mere dost, yahaan Twitter pe log "profitability" dekhte hai "sympathy" nahi.

Also - "it was tough decision" 💔

— Suumit Shah (@suumitshah) July 10, 2023

"Laying off is never a pleasant experience, why is the need to proclaim and be proud about it," a Twitter user wrote.

This comes after Union Minister of State for Electronics and IT Rajeev Chandrasekhar recently dismissed concerns about AI threatening jobs as "nonsense".