Loco Layoffs: Gaming Company Lets Go of 40 Employees

New Delhi: In a strategic review of operations, gaming company Loco has let go of 40 of its 110 employees. The news was confirmed by Loco Founder Anirudh Pandita on Thursday. The laid-off employees comprised 36 per cent of the company's total workforce.

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Reason Behind Layoffs

Pandita explained that no sector can remain unaffected by global turbulence. He cited a strategic review of the previous quarter pertaining to transactions on the platform and the percentage of paid users, which is higher on a global average, but advertising was lacking. Additionally, Pandita emphasized the importance of being cost-efficient in the current financial cycle and global market.

Pandita refuted investor pressure or performance as factors for the layoffs. He clarified that the decision was based on a company review conducted last week and affected roles related to engagement-based services and advertising.

Support for Affected Employees

The company has taken steps to support the affected employees. Pandita stated that Loco will provide financial support, severance, insurance, and emotional assistance to help them transition smoothly. The company had previously cut marketing costs last year and is now focusing on making its tech and employee cost structure more efficient.

Expansion Plans

Despite the layoffs, Loco remains committed to its growth plans. In November, the company launched a paid VIP loyalty program and shared its intentions for international expansion. These initiatives indicate Loco's determination to continue innovating and reaching new markets.

In conclusion, while the layoffs at Loco are undoubtedly a challenging time for the affected employees, the company's strategic review and support measures aim to minimize the impact and ensure a smooth transition for those affected. Loco's commitment to cost efficiency and continued expansion plans suggest that the company is adapting to the evolving market conditions and remains focused on long-term growth.