Loco, a prominent game streaming platform, recently faced such a crossroad. The company’s strategic adjustments and their impact on its workforce reflect the broader trends and challenges within the gaming sector.
Loco has made a significant move by laying off approximately 36% of its workforce, impacting 40 employees out of a total of 110. This step was revealed during a town hall meeting led by founders Anirudh Pandita and Ashwin Suresh. They explained that these layoffs were a part of the firm’s restructuring strategy, aimed at reshaping the company’s future.
The rationale behind these layoffs was rooted in a strategic review, with a keen focus on transactions on the platform and the percentage of paid users. Despite a higher global average in these areas, Loco found its advertising segment lagging. Anirudh Pandita, the company’s founder, emphasized the importance of being cost-efficient in the current financial and global market scenario. He clarified that the layoffs were not due to performance issues but were a strategic decision to streamline operations. The most affected areas were the product side, engagement-based services, and advertising departments.
Founded as an independent entity from parent company Pocket Aces in 2018, Loco has grown to feature popular games like Clash of Clans, FreeFire, and Call of Duty Mobile. It hosts top esports teams and tournaments and has raised more than $50 million in funding. Despite the recent layoffs, Loco has committed to supporting the affected employees with financial assistance, ongoing health insurance, and outplacement services. Pandita assured that the company is taking measures to ensure that these employees land on their feet, showcasing a responsible approach to this challenging situation.
