Another gaming platform has decided to lay off 36% of its workforce. Loco, a three-year-old Indian game-streaming platform based in Mumbai, has laid off 40 employees, joining a long list of gaming platforms that are downsizing.
The platform, which streams game videos and broadcasts esports content, describes the change as a restructuring exercise and claims it will focus on global expansion.
Loco introduced a ‘Quest’ feature about six months ago to ensure a more interactive experience for users, after reporting a high market share and extraordinary levels of engagement, with users spending more than an hour a day on the platform.
According to the official website, Loco has grown to 55 million registered users since 2020, with a nine-fold year-on-year increase in daily active users (DAU). Within a year of its launch, the platform had over one lakh creators streaming on it, with four times year-on-year creator sign-up growth and a monthly content consumption of 17 million live watch hours.
The decision to reduce the team is expected to ensure the platform’s long-term health and sustainability.
Of course, the platform intends to assist the impacted team members with monetary assistance, ongoing health insurance, and outplacement assistance. According to reports, the company intends to prioritise cost control and transaction-based revenue generation.
Loco’s metrics have improved since the launch of its VIP programme and the Sky Championship 5.0. Paid members of its VIP programme account for 3% of its monthly active users.
In 2022, the platform, founded by Anirudh Pandita and Ashwin Suresh, had raised $42 million in a Series A round led by Hashed, a South Korean venture capitalist.