PocketFM Reduces Workforce Amid Profitability Goals
PocketFM, an audio series startup, has made the decision to reduce its workforce by 75 employees as part of its strategy to cut costs and achieve profitability. This development was first reported by Moneycontrol.
A spokesperson for PocketFM stated, “As part of our commitment to building a more efficient and profitable organisation, we have made the difficult decision to part ways with close to 75 of our valued team members. This step, while challenging, was necessary to ensure the long-term sustainability and success of our organization. We deeply appreciate the contributions of those affected and are committed to supporting them through this transition.”
Financial Performance Overview
In November, PocketFM revealed a 77.5% reduction in its net loss, reporting a loss of Rs 15.7 crore in FY24 compared to Rs 68.71 crore in FY23. During the same period, the company also experienced a two-fold increase in revenue, yet faced mounting expenses, particularly in employee benefits.
History of Workforce Reductions
This round of layoffs is not unprecedented; last year, PocketFM eliminated approximately 200 writers along with 50 other staff members as part of ongoing efforts to manage costs and enhance profitability.
Funding and Expansion Plans
Last year, the company successfully raised $103 million in Series D funding, a round led by Lightspeed. The funds were earmarked for expanding services in the United States and for further growth in Europe and Latin America.
Similarly, PocketFM’s competitor, Kuku FM, has also recently undertaken measures to reduce its workforce by 100 employees as a strategy to cut costs, as reported by Inc42.
[ad_1]