Summary Points:
- VerSe Innovation is letting go of 350 employees across departments in May 2025.
- The restructuring aligns with its strategy to automate operations using AI.
- Company targets profitability by end of FY25; already halved EBITDA losses in FY24.
- VerSe is investing in generative and recommendation-based AI for content optimization.
- Move reflects industry-wide pivot toward leaner, tech-driven business models.
Strategic Shift, Human Cost
In a move that reflects broader structural changes in India’s tech ecosystem, Bengaluru-based VerSe Innovation is laying off 350 employees this month. The company, best known for running content platform Dailyhunt and short-video app Josh, is cutting staff as part of what it describes as a “strategic transformation” toward artificial intelligence-led operations.
This restructuring aims to streamline workflows, reduce operational redundancies, and prepare the organization for long-term profitability. The layoffs span multiple departments and follow similar decisions taken across global tech firms adapting to new cost and technology pressures.
Automation as Strategy
The layoffs are part of VerSe’s broader plan to embed AI deeply into its operations — from content recommendations to user engagement and monetization. The company is betting on large-scale automation to replace manual processes and unlock greater efficiency across its platforms.
VerSe’s leadership says the transformation will make the company more agile and aligned with emerging market demands, including better user targeting through AI personalization.
The company plans to cross-leverage internal teams across business units rather than build vertical silos — a structure it hopes will reduce duplication and streamline execution.
Financials Reveal Progress
The cost-cutting comes at a time when VerSe is already making financial headway. In FY24, the company brought down its EBITDA loss by over 51%, from Rs 1,448 crore to Rs 710 crore. The company expects to grow revenue by more than 75% in FY25 — far outpacing India’s overall digital advertising sector, which is forecasted to grow between 10-15%.
Much of this growth, it says, will come from integrating generative AI tools that improve content accessibility and retention while expanding monetization options for creators and advertisers alike.
Part of a Broader Tech Recalibration
VerSe is not alone. As venture funding slows and profitability becomes paramount, Indian startups — particularly in the consumer internet space — are revisiting their cost structures.
Recent workforce reductions at other unicorns and large tech firms suggest a trend: replace headcount with software, particularly AI. And while AI promises long-term efficiency, the short-term reality remains — hundreds of jobs are being lost in the name of digital evolution.
