VerSe Innovation, the parent company of Dailyhunt and Josh, has announced plans to lay off 350 employees as part of a strategic restructuring aimed at boosting profitability and accelerating investments in artificial intelligence (AI).
The move comes amid declining revenues and a broader effort to streamline operations while focusing on growth segments.
Reasons Behind the Layoffs at VerSe Innovation
The layoffs are part of VerSe’s long-term strategy to create a more agile and future-ready organization.
The company aims to:
- Automate manual processes using AI to improve operational efficiency.
- Reduce operational costs and optimize workforce allocation.
- Align resources with high-growth areas such as AI-driven content platforms and influencer marketing.
VerSe Innovation has been undergoing a strategic transformation, focusing on cross-leveraging talent across business units and investing in AI-led platforms such as NexVerse.ai, Dailyhunt Premium, and VerSe Collab, a platform for managing influencer campaigns.
VerSe Innovation Financial Performance and Profitability Goals
Despite the layoffs, VerSe Innovation remains optimistic about its financial outlook:
- Revenue for FY24 stood at ₹1,029 crore, down from ₹1,104 crore in FY23.
- Net loss reduced to ₹889 crore in FY24, compared to ₹1,909.7 crore the previous year.
- The company projects over 75% revenue growth in FY25, significantly outpacing the 10–15% expected growth in India’s digital advertising sector.
VerSe Innovation has also raised over $2 billion in funding, with major investors including the Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan Board.
Industry Trends and AI Investments
The layoffs at VerSe Innovation reflect a broader trend in the tech industry, where companies are restructuring their workforces to prioritize AI-driven efficiencies.
Other firms, including Google-backed ShareChat and Pocket FM, have also cut jobs in recent months to focus on profitability and automation.
CEO Umang Bedi emphasized that AI is integral to VerSe’s future, stating that the company is leveraging AI for content recommendations, generative content capabilities, and monetization strategies.
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