Loco Lays Off 40 Employees

Key insights

6 takeaways

01
Indian streaming platform Loco has laid off 40 employees, representing approximately 35% of its total workforce of 110.
02
The company is shifting its business model from ad-based monetization to a transaction-based approach following a strategic review.
03
Loco reported early success with its new focus, reaching over 100,000 paying users within a 60-day period.
04
Approximately 70 employees remain at the company following the restructuring, which management stated was not based on individual performance.
05
Impacted staff are being provided with severance, health insurance coverage, and outplacement services to assist with their transition.
06
Loco is a division of Pocket Aces that specializes in live streaming gaming and esports content in India.

Summary

The Bengaluru-based gaming and entertainment streaming platform Loco has reduced its workforce by approximately 35%, resulting in the termination of 40 employees. Following these cuts, the company retains a staff of roughly 70 individuals. This organizational restructuring was announced in late 2023 as a direct response to a strategic review of the company’s business model.

The primary driver for these layoffs is a shift in revenue strategy. Loco has determined that transaction-based monetization is scaling more effectively than its traditional ad-based model, citing the acquisition of over 100,000 paying users within a 60-day period. Consequently, the company is pivoting its operations to prioritize this transactional approach, necessitating a leaner organizational structure. Leadership emphasized that these personnel changes were not based on individual performance but were instead a structural requirement to support the new business direction.

To assist those affected by the reduction, the company has committed to providing severance packages, ongoing health insurance coverage, and outplacement services. Loco, a division of Pocket Aces, continues to operate as a live streaming platform for gaming and esports content in India, having recently served as an official broadcast partner for major regional esports tournaments.