Monday, July 22, 2024
Outlook India
Outlook Business

SoftBank-Backed InMobi Announces Layoff of 125 Employees

The company said that the layoffs are performance-based, not cost-cutting. It is InMobi's second round of layoffs, following a previous cut of about 70 employees in January 2023

SoftBank-Backed InMobi Announces Layoff of 125 Employees
POSTED ON January 12, 2024 2:17 PM

InMobi Group, an advertising technology firm, will let go of nearly 5 per cent of its total workforce, or 125 employees, as part of a strategic shift towards adopting an artificial intelligence (AI)-centric approach to operations.    

The Bengaluru-based company, which currently employs 2,500 people globally, aims to reshape its operations through this workforce adjustment, CNBC-TV18 reported.  

“As artificial intelligence (AI) has been sweeping the world, the market needs and the expectations that our customers — brands, agencies, and developers — have of us are changing rapidly. The products for addressing the market needs and customer expectations, the skill sets for delivering those products, and the go-to-market strategies are going to be significantly different from those of the past decade,” said an InMobi spokesperson. 

“The changes that we are bringing in at the organisation level are a proactive step for us to address the above needs, stay competitive and win globally in this decade and beyond,” added the spokesperson. 
The company has clarified that the decision is performance-based rather than a cost-cutting initiative. This marks the company's second round of layoffs, having previously laid off approximately 70 employees in January 2023.

The adtech is the second major start-up to undergo layoffs after Paytm, which reportedly fired over 1,000 employees across various departments in recent months. The fintech attributed the layoffs to the integration of Artificial Intelligence (AI), causing substantial changes in its operational structure.  

InMobi Group is supported by SoftBank, Google, Jio Platforms, and Mithril Capital, which comprises two entities – InMobi Ads, focused on advertising technology, and Glance, a consumer technology company providing a smart lock screen platform for Android smartphones.  

In July 2019, InMobi founded Glance as a separate entity, which achieved unicorn status in December 2020. In addition to Glance, the company oversees two more subsidiaries: advertising technology under InMobi UMC and the data business TruFactor.  

Although InMobi's Singapore entity is yet to file its FY23 annual financial report, its Indian subsidiary has recorded a substantial 41 per cent revenue increase from Rs 415.93 crore in FY22 to Rs 589.57 crore in FY23. The firm's profit after tax (PAT) for FY23 stood at Rs 113.2 crore, as per news platform Entrackr. 

  • Related Articles

    ZestMoney's decision to shut down comes after it couldn't recover its business following unsuccessful acquisition talks with fintech major PhonePe in March this year

    ZestMoney, Fintech Start-Up, to Cease Operations by December-End, Announces Layoff of 150 Employees: Report

    Online gaming start-ups are coming to terms with the new reality of a tough landscape as government pushes ahead with its plans of 28 per cent GST. With uncertainty over the sector’s future rising,...

    Layoffs, Closures: 28% GST Hits Online Gaming Industry Hard As Authorities Begin Tax Recovery

    The Indeed survey reported a 8 per cent rise in white-collar hiring despite economic uncertainties during this period

    In The Backdrop Of Layoffs, 61% Employers Continued To Hire In AMJ 23 Quarter