According to Business Insider, Dukaan CEO Suumit Shah sparked backlash after announcing on Twitter that his company laid off 90% of its customer support team, replacing them with an AI chatbot. Shah claimed the bot was faster and cut costs by 85%, but critics questioned the motives and ethics behind the move. He later told Insider he regretted sharing the news online but stood by the decision, saying, “AI is taking our jobs.” The case reflects a growing trend of AI-driven layoffs, raising concerns about transparency, trust, and the future of human-centered support.
Suumit Shah, CEO of the Bengaluru-based e-commerce platform Dukaan, faced significant online backlash after revealing that his company had replaced the majority of its customer support team with an AI chatbot. In a Twitter thread posted on July 11, Shah stated that 90% of the support staff were laid off following the chatbot’s superior performance in handling customer queries.
Shah claimed the AI system responded in under two minutes, compared to the two-hour average response time from human agents. He also noted that the shift to automation reduced support costs by approximately 85%. The layoffs reportedly occurred in September 2022, with 23 out of 26 support staff let go. Dukaan now operates with around 60 employees, and Shah estimated his monthly support budget at just $100—figures Insider could not independently verify.
The announcement sparked widespread criticism across social media platforms. Many Twitter and Reddit users questioned the motives behind the layoffs, suggesting financial strain rather than technological efficiency as the real driver. One user commented that the move exemplified poor communication around workforce reductions, while another expressed concern about a future dominated by impersonal bot interactions in customer service.
In response to the backlash, Shah told Insider he regretted initiating the conversation on Twitter but stood by his decision, stating, “AI is taking our jobs.” He added that similar transitions are likely across industries and that Dukaan is not alone in adopting such measures.
Business Insider also referenced a broader trend, citing a report from Challenger, Gray & Christmas indicating that AI-related layoffs are becoming more common. A separate case involved the U.S. National Eating Disorder Association, which replaced its helpline staff with a chatbot—only to disable it shortly after due to problematic responses.