VerSe Innovation has announced a significant reduction in its workforce, planning to lay off around 350 employees in May 2025. This move comes as part of the company’s strategic transformation aimed at aligning its operations with its long-term business goals.
The layoffs mark the first significant workforce reduction since late 2022, when the company let go of 150 employees during a previous cost-cutting initiative.
Strategic Transformation with AI Focus
A spokesperson for VerSe emphasized that the decision to cut jobs is part of a comprehensive plan to accelerate investments in artificial intelligence (AI).
The company is integrating AI across its content ecosystem to enhance user engagement, accessibility, and monetization. CEO Umang Bedi stated that AI is being utilized for large-scale content recommendations and to automate manual processes, ultimately aiming for profitability by the end of 2025.
In FY24, VerSe successfully reduced its EBITDA burn by 51%, decreasing it from Rs 1,448 crore to Rs 710 crore. This improvement was attributed to strategic cost management measures, including cuts in service and marketing expenses. The company reported a total revenue of Rs 1,261 crore for the fiscal year.
Ambitious Growth Plans Ahead
Looking forward, VerSe Innovation anticipates over 75% revenue growth in FY25, significantly outpacing the expected 10-15% growth in the Indian digital advertising market.
This optimistic outlook is bolstered by investments in AI-driven platforms such as NexVerse.ai, a new AdTech platform, and the Dailyhunt Premium subscription service, which has recently expanded through the acquisition of Magzter.
Furthermore, the company is focused on expanding its revenue streams through both organic growth and potential acquisitions, with an eye toward preparing for a public offering in the future. This transformation reflects VerSe’s commitment to remain competitive in the rapidly evolving digital landscape while aligning its operations with innovative technologies.
