VerSe Innovation, the parent company behind popular content platforms such as Dailyhunt and Josh, has announced a significant restructuring initiative that will see the reduction of approximately 350 positions in May 2025. This move marks the company’s most substantial workforce adjustment in over two years and reflects its renewed push toward profitability, operational efficiency, and AI-driven transformation.
The company issued a statement on Saturday outlining the reasons behind the layoffs. According to the official communication, VerSe aims to realign its operations with long-term business priorities by embracing artificial intelligence, consolidating functions, and eliminating redundancies. The spokesperson stated, “This strategic transformation is a part of a well thought through comprehensive plan and is geared at accelerating investments in AI, streamlining operations, and taking concerted actions to align the company’s strategy and structure to its long-term priorities and growth.”
Historical Context and the Scale of Change
The last time VerSe Innovation initiated layoffs was over two and a half years ago, when it released around 150 employees as part of an effort to reduce costs during a turbulent funding environment. The latest round of job cuts—more than double the previous figure—demonstrates the scale and urgency of the company’s current transformation agenda.
VerSe currently employs over 3,000 individuals, so the planned reduction of 350 roles represents more than 10% of its workforce. Leadership has not taken this decision lightly. However, they remain committed to implementing sweeping operational changes that will drive efficiency, fuel product innovation, and position the company for sustainable growth and an eventual public offering.
Strategic Shift Toward Automation and AI
VerSe has placed artificial intelligence at the center of its operational strategy. The company intends to use AI to automate manual and repetitive tasks, optimize content recommendations, improve advertising performance, and streamline backend processes. Management believes this transition will enable faster decision-making, higher productivity, and better customer experiences while keeping costs under control.
To lead this AI-driven evolution, VerSe has launched multiple initiatives. One of the most notable among them is NexVerse.ai, a proprietary AdTech platform that leverages machine learning to deliver intelligent advertising solutions. NexVerse.ai helps advertisers optimize their digital campaigns with personalized targeting, predictive analytics, and performance tracking. This technology allows VerSe to compete more aggressively in India’s expanding digital advertising landscape.
Revenue Growth and Product Expansion
VerSe Innovation expects its revenue to grow by over 75% in FY25, significantly outpacing the anticipated 10–15% growth in India’s digital advertising market. This bullish projection comes on the back of rising demand for AI-based advertising solutions, increased user engagement across its content platforms, and subscription-driven monetization strategies.
The company continues to invest in product innovation. Its premium content service, Dailyhunt Premium, launched in partnership with Magzter, offers users an ad-free experience and access to premium magazine content. The company’s efforts to diversify revenue streams through subscriptions aim to reduce dependency on advertising income.
Additionally, VerSe Collab, the company’s platform for managing influencer-led marketing campaigns, has gained significant traction. VerSe uses this platform to help brands connect with content creators, manage campaign performance, and measure ROI in real time. This tool enhances VerSe’s positioning in the creator economy, where brands increasingly rely on influencers to reach younger digital audiences.
Financial Progress and Path to Profitability
VerSe Innovation has made noteworthy progress in reducing its financial losses. In FY24, the company cut its EBITDA burn by 51%—bringing it down to ₹710 crore from ₹1,448 crore in FY23. This sharp decline resulted from rigorous cost optimization strategies, including reduced service expenditures, tighter control on marketing budgets, and the strategic pause or restructuring of underperforming business segments.
Total revenue for FY24 stood at ₹1,261 crore, reflecting a strong recovery following a period of global market uncertainty and investor caution. The company attributes its improved financial position to a combination of strategic investments, enhanced monetization, and operational discipline.
VerSe now targets profitability by the end of the current fiscal year. The leadership remains confident that through automation, scaling high-margin businesses, and disciplined spending, they can achieve sustainable financial outcomes and prepare for public market readiness.
Acquisition Plans and Expansion Outlook
Beyond internal growth, VerSe plans to accelerate its revenue expansion through strategic acquisitions. The company has shown interest in acquiring businesses that complement its existing offerings—particularly startups focused on content creation tools, AI infrastructure, or regional-language media.
These acquisitions will help VerSe strengthen its technology stack, broaden its content reach, and deepen its footprint in Tier 2 and Tier 3 cities. India’s internet user base continues to grow rapidly, and VerSe sees enormous potential in catering to the next 400 million users who prefer consuming content in regional languages.
By integrating promising startups into its ecosystem, VerSe can fast-track innovation, increase engagement, and unlock new monetization opportunities. These moves will play a critical role in the company’s roadmap to become a listed entity in the next 18 to 24 months.
Industry Landscape and Competitive Pressures
VerSe operates in a highly dynamic and competitive digital content market, with key rivals such as ShareChat, DailyMotion, and YouTube Shorts competing for both users and advertiser attention. As social video content continues to dominate user engagement in India, platforms must innovate rapidly while optimizing their cost structures.
While VerSe remains a leader in the vernacular content segment, it must consistently upgrade its technology, content formats, and monetization methods to stay ahead. AI-driven personalization, influencer collaboration, and scalable AdTech will remain central to the battle for digital eyeballs.
The company’s focus on automation and strategic restructuring positions it well to withstand competitive pressures. However, success will depend on how effectively VerSe can balance growth initiatives with operational stability in the coming quarters.
Employee Impact and Organizational Culture
Though the layoffs serve a strategic purpose, they inevitably affect the employees and teams involved. VerSe has reportedly offered severance packages and outplacement support to those impacted. The company aims to maintain transparency and empathy throughout the transition process.
Internally, the leadership team has emphasized the importance of a lean, agile, and innovative work culture. By creating a more focused and empowered organization, VerSe hopes to foster an environment where employees can contribute meaningfully to long-term goals.
Leadership believes that the difficult decision to reduce headcount will create room for investment in critical areas, such as AI R&D, product development, and international expansion.
Conclusion
VerSe Innovation’s decision to lay off 350 employees reflects a broader transformation strategy aimed at turning the company into a leaner, AI-driven, and profit-oriented digital enterprise. With a sharp focus on automation, operational efficiency, and revenue growth through both innovation and acquisition, the company charts a new path toward long-term sustainability.
The financial strides made in FY24 and the ambitious projections for FY25 underscore VerSe’s readiness to scale its business while navigating a competitive digital ecosystem. As the company aligns its workforce and technology with future priorities, it prepares to transition from a private player to a public-ready enterprise—poised to lead the next phase of India’s digital content revolution.