VerSe Innovation Slashes 350 Jobs in Major Restructuring Move

Nearly 350 workers were let go by VerSe Innovation, the company behind DailyHunt and Josh, as part of a larger "strategic" reorganisation effort. A corporate representative said in a statement that the layoffs were due to "workforce realignment" in order to focus on long-term goals and growth, streamline operations, and accelerate investments in AI.

The representative went on to say that the company will reduce its personnel by about 350 positions this month in order to create a more future-ready organisation where resources are allocated to growth areas and talent is cross-leveraged across business divisions.

Company to Focus on Automation Now

VerSe stated that in order to improve operational efficiency and create a "more future-ready organisation", it will now concentrate on automating a number of "manual processes". According to the spokesman, VerSe Innovation has been going through a strategic transition to become a more focused, flexible, and future-ready company.

This strategic shift, which is a component of a well-thought-out overall plan, aims to accelerate AI investments, streamline operations, and take coordinated steps to match the organisation's structure and strategy with its long-term goals and expansion.

 With aspirations for a future listing on the bourses, the unicorn has also set its sights on increasing its revenue "organically" and through smart acquisitions. "A focus on growth drivers and operational and structural efficiencies are actions directed to make the company profitable by the end of this fiscal year," the representative continued.

VerSe Going Through Financial Instability

VerSe stated that by cutting back on marketing and service costs, it was able to cut its EBITDA burn by 51%, from INR 1,448 Cr in FY23 to INR 710 Cr in FY24. The entire income for FY24 was INR 1,261 Cr, it noted.

However, the corporation have been at odds over VerSe's FY24 financials. A media house reported last month that in its audit report for FY24, auditor Deloitte identified flaws in the Josh parent company's internal financial controls, including problems with revenue recognition, handling of virtual assets, supplier selection, expense provision, and IT systems control.

Umang Bedi, the CEO and cofounder of VerSe, acknowledged that the company's controls were inadequate but assured a media outlet that the financials were accurate and fair with a clean report. Despite this, VerSe anticipates a YoY increase in sales of over 75% in FY25 due to investments in AI-led platforms, including subscription service Magzter and adtech platform NexVerse.ai.

 In FY24, VerSe's net loss decreased by over 56% to INR 814.8 Cr from INR 1,878.4 Cr in the previous year. In the meantime, the company's operational revenue decreased by 8.8% from INR 1,046.8 Cr in FY23 to INR 954.7 Cr in the fiscal year under review. Notably, VerSe Innovation has previously let go of staff members.

The company laid off about 150 workers in November 2022, a few months after financing an enormous $805 million round.