Highlights:
- Koo, a Twitter rival that launched in India, has let go of more than 200 employees.
- A Twitter competitor in India reportedly let off 30% of its workforce.
- Koo reduced employment because the business needed to concentrate on efficiency.
According to a Bloomberg report, Koo, a domestically developed social media platform in India launched as a Twitter alternative, has let go of over 200 employees, which represents around 30% of its workforce. This move comes on the heels of Elon Musk’s statement that Twitter has laid off over 7,000 employees in the last two months, leaving only 1,500 remaining.
As per the Bloomberg report, Koo has downsized its workforce due to a need to concentrate on efficiency and unit economics in the current global climate. This decision has led to the departure of over 200 employees, including 30% of the staff, with a previous 15-employee layoff occurring last year.
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Initially, Koo gained attention when Twitter came under fire from Indian authorities over the content on its platform. Many Indian celebrities subsequently moved to Koo as an alternative. However, Koo’s recent job cuts come at a time of limited startup funding, with research firm Tracxn noting a 75% drop in startup funding in the quarter ending March compared to the same period last year.
Tracxn’s data shows that Koo received investments from Accel and Kalaari Capital, among others, at a $273 million valuation last year. A company spokesperson informed Bloomberg that the impacted employees would receive compensation packages, health benefits, and support in finding new job opportunities.
This news shows the difficulties that Indian companies are facing in the context of the COVID-19 pandemic’s effects on the world economy. Efficiency and unit economics are becoming more and more important to businesses, and investors are scrutinising companies more closely before making investments. However, Koo’s CEO expressed optimism about the company’s prospects, saying that it is still expanding and has aspirations to go global.
In conclusion, Koo’s recent layoffs highlight the difficulties Indian entrepreneurs face in an economically challenging environment. However, the business is still upbeat about the future and devoted to helping its staff members through this trying moment. It would be interesting to see how Koo and other Indian companies adjust to the shifting economic landscape as the global economy continues to improve.
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