Layoffs- In the financial year 2022, VerSe Innovation has incurred a loss of 2,563 crores. In the financial year 2021, this loss was Rs 808 crore. However, the company’s operating revenue increased by 46 percent to Rs 965 crore in FY2022 from Rs 666 crore in the previous year.
New Delhi. VerSe Innovation, the parent company of news aggregator Dailyhunt and short video platform Josh, will lay off employees. The company, which is facing many economic challenges, will also cut the salary of the employees in addition to the retrenchment. The valuation of Versa Innovation is $ 5 billion. Company’s co-founders Virendra Gupta and Umang Bedi have announced this in the townhall meeting. There will be an 11 percent cut in the salary of employees getting an annual salary of Rs 10 lakh.
Moneycontrol According to a report, the company will reduce its workforce by 5 percent. This means that the company will lay off around 150 employees. Confirming the layoffs, Bedi said that like other businesses, we too are changing our strategic priorities. We are taking several steps to reduce expenses and achieve our long term goals. Bedi said that these steps will affect 5 per cent of the workforce.
Losses are increasing
According to a report by Intracker, in the financial year 2022, Versa Innovation has incurred a loss of 2,563 crores. In the financial year 2021, this loss was Rs 808 crore. However, the company’s operating revenue increased by 46 percent to Rs 965 crore in FY2022 from Rs 666 crore in the previous year. The report further states that Versa Innovation has invested heavily in its video platform Josh to compete with Meta’s Instagram Reels, Google’s YouTube Shorts and ShareChat’s short video platforms Moj and Takatak.
ByteDance had also invested
The company was started in 2007 by Virendra Gupta and Shailendra Sharma. Umang Bedi had joined the firm in February 2018. Initially, Tiktok’s parent company ByteDance invested in it. The company launched the short video platform Josh in 2020, soon after the Tiktok ban. Josh became very popular in the beginning. ByteDance exited Versa Innovation in June at a huge discount of 56 percent.
Hirect will lay off 40 percent of its employees
Chat based direct hiring platform Hirect has also announced to lay off 40 percent of its employees. The company will terminate the services of around 200 employees. The company’s co-founder and CEO, Raj Das said that the company is making strategic changes in its business model. Therefore, the company has decided to reduce its workforce. Ever since the companies reduced new recruitments, many difficulties have arisen in front of small startups like Hirect. According to the LinkedIn page, the company has a total of 472 employees. At one time 600 employees used to work in the company.
