VerSe Innovation to Lay Off 350 Employees Amid Strategic AI Investment

VerSe Innovation, the parent company of Dailyhunt and Josh, has announced plans to lay off approximately 350 employees this month as part of a strategic restructuring aimed at enhancing profitability and accelerating investments in artificial intelligence (AI).

The Bengaluru-based tech firm stated that this move is part of a broader transformation to build a more agile and future-ready organization. By automating manual processes and streamlining operations, VerSe aims to reduce costs and improve efficiency. The company is leveraging AI technologies, including large-scale recommendation systems and generative AI, to enhance user engagement and monetization across its platforms.

In the fiscal year 2024, VerSe reported a 51% reduction in its EBITDA loss, bringing it down to ₹710 crore from ₹1,448 crore the previous year. The company’s total revenue stood at ₹1,261 crore. Looking ahead, VerSe projects over 75% revenue growth in FY25, significantly outpacing the anticipated 10–15% growth in India’s digital advertising sector. This optimistic outlook is supported by investments in AI-driven platforms such as NexVerse.ai, the Dailyhunt Premium subscription service in partnership with Magzter, and VerSe Collab for influencer campaign management.

The layoffs mark VerSe’s first major workforce reduction since November 2022, when the company let go of around 150 employees. The current restructuring aligns with VerSe’s long-term goals, including a potential initial public offering (IPO) and strategic acquisitions to drive revenue growth.

This development reflects a broader trend in the tech industry, where companies are increasingly focusing on AI integration and operational efficiency to remain competitive and achieve sustainable growth.