In January 2024, Bengaluru-based advertising technology company InMobi announced a significant shift in its operations, adopting an AI-first approach. This strategic move led to the layoff of 125 employees, or 5% of its global workforce. In this article, we'll discuss the reasons behind these layoffs, the impact on the company, and the potential future implications of this AI-focused strategy.
The layoffs at InMobi were driven by the company's decision to adopt an AI-first approach, leading to a significant operational overhaul. This strategic shift required realignment across technology, organizational structure, people, and skills, ultimately affecting 125 employees, or 5% of its global workforce. The move aimed to phase out some legacy processes and introduce automation to streamline operations, addressing rapidly changing market needs and customer expectations. InMobi's decision to focus on AI and automation can be seen as part of a broader industry trend, with other companies like Paytm also "rightsizing" their operations due to AI adoption. While the article does not provide direct insights from industry analysts or company executives, it is clear that InMobi's restructuring is a proactive step to stay competitive and win globally in the face of evolving market demands.
InMobi's strategic shift to an AI-first approach, along with the discontinuation of external consultant engagements in favor of building an in-house talent base, is designed to streamline operations and reduce expenses. This move accompanies a notable surge in net profit to INR 113.2 Cr in FY23, highlighting effective financial and operational adjustments within the competitive tech landscape. By prioritizing artificial intelligence, InMobi aims to enhance its key offerings, including InMobi Ads and Glance, the latter being a smart lock screen technology poised for expansion into the US and European markets. This strategic realignment across its technology and organizational structure is set to position InMobi for sustained growth and innovation in a rapidly evolving market.
As InMobi's layoffs stem from the adoption of an AI-first approach, this move signifies a broader trend in the marketing industry towards leveraging artificial intelligence for business operations and strategy. The job market may experience volatility as companies increasingly adopt new technologies, leading to shifts in industry dynamics where technological innovation and efficiency become paramount. InMobi's strategic move could prompt similar actions from competitors seeking to remain competitive in the adtech space. Furthermore, other companies in the adtech and marketing industries may find opportunities to hire skilled workers affected by the layoffs, while businesses providing AI and machine learning solutions could see increased demand for their services as more organizations integrate these technologies into their operations.
InMobi's layoffs, affecting 5% of its global workforce, resulted from adopting an AI-first approach to streamline operations and stay competitive. This strategic shift may impact the company's future standing in the adtech industry and influence broader market trends. As more organizations integrate AI and automation, the job market could experience volatility, and competitors may follow suit to remain relevant. InMobi's decision could potentially lead to further AI-driven innovations and expansion in the sector.
