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VerSe Innovation Lays Off 150 Employees

Earlier this year, VerSe Innovation raised $805 million in an investment round led by Canada Pension Plan Investment Board

VerSe Innovation Lays Off 150 Employees
Layoff
POSTED ON November 30, 2022 10:35 PM

In an attempt to take cost-cutting measures, Bengaluru-based start-up VerSe Innovation has decided to fire nearly 150 employees from its 3000-strong employee strength. Apart from this layoff, the company also announced an 11 per cent pay cut to those who earn more than Rs 10 lakh annually. 

VerSe is the parent company of Dailyhunt and the short-form video production platform Josh. 

The development came after the company witnessed a surge in net losses to Rs 2,563 crore in the financial year (FY) 2022 from Rs 808 crore in FY21. 

Confirming the layoff, Umang Bedi, co-founder of VerSe Innovation told The Economic Times, “Given the current economic climate, like other businesses, we’ve evaluated our strategic priorities. Considering the long-term viability of the business and our people, we have taken steps to implement our regular bi-annual performance management cycle and made performance and business considerations to streamline our costs and our teams. This has impacted 5 per cent of our 3,000-strong workforce.”

“In addition, to ensure long-term profitable growth, we have exercised fiscal and employee prudence and implemented an 11 per cent salary cut for all individuals with salaries above 10 lakh per annum. We remain extremely committed and bullish across our entire family of apps—Josh, Dailyhunt and PublicVibe—to drive profitable growth,” he further added. 

Earlier this year, VerSe Innovation raised $805 million in an investment round led by Canada Pension Plan Investment Board (CPP Investments). It achieved a valuation of $5 billion at that time. 

VerSe Innovation joined the unicorn club of Indian start-ups in November 2020 after bagging $227 million from Microsoft, Sequoia, Matrix Partners India and Qatar Investment Authority. 

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