More than 100 workers will be let go by the InMobi group, marking the company’s second layoff in as many months.
According to a report on CNBC-TV18, the unicorn in advertising technology will lay off 125 of its 2,500 global workers. The change will affect about 5% of the workforce overall.
“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 SoftBank-backed company let go of between 50 and 70 workers in January 2023.
With this action, InMobi becomes the second sizable company from the Indian startup scene to fire staff members on the grounds of using artificial intelligence. A month ago, Paytm let go of 1,000 workers. However, InMobi made it clear that this is not a cost-cutting strategy but rather a performance-based one.
InMobi established Glance, a distinct entity, in July 2019, and it too became a unicorn in December 2020. InMobi also owns two other subsidiaries under its corporate umbrella: TruFactor, a data company, and advertising technology under InMobi UMC. These are in addition to Glance.
InMobi’s Indian entity recorded a 41% revenue increase to Rs 589.57 crore in FY23 from Rs 415.93 crore in FY22, while the company’s Singaporean entity has not yet submitted its annual financial report for FY23. The company’s FY23 profit after tax (PAT) came to Rs 113.2 crore.
