Koo, Twitter competitor, cuts 30% of staff due to challenging market conditions
In an effort to address the financial challenges posed by the current macroeconomic environment, Koo App, a microblogging platform headquartered in Bengaluru, has recently carried out a workforce reduction, resulting in a 30% staff reduction.
Koo, as per its LinkedIn page, has an approximate workforce of 300 employees, indicating that the recent downsizing measures likely impacted around 90 employees. The reduction in workforce was carried out gradually over the span of a year, as confirmed by a spokesperson from the company.
Koo, the platform that competes with Twitter, stated that it has provided support to the impacted employees through compensation packages, extended health benefits, and outplacement services. The company acknowledged that, like many startups, it had initially built its workforce to account for growth spikes.
However, due to the current market conditions and the global economic slowdown, Koo has also been affected, as stated in their official statement.
Koo's statement reveals that the company's focus will now be on enhancing unit economics and driving operational efficiency, instead of prioritising growth, as reported by Bloomberg.
Amidst a trend of startups seeking to cut costs by downsizing their workforce, Koo's decision to implement staff reductions aligns with similar actions taken by other companies in the industry.
This includes edtech firm Unacademy, which recently laid off 12% of its workforce, healthcare firm Pristyn Care, which dismissed nearly 300 employees, as well as global companies like Meta, Disney, and EY, who have also reduced their staff in recent times.