According to a report by Bloomberg, the trend of layoffs in the tech industry is still ongoing, as more companies struggle with a funding shortage. The Indian competitor of Twitter, Koo, has reportedly laid off around 30% of its total workforce of 260 employees in recent months.
“Global sentiment right now is more focussed on efficiency than growth and businesses need to work toward proving unit economics,” a Koo spokesperson told Bloomberg News.
Koo gained popularity during a dispute between the Indian government and Twitter, as many Indian ministers, Bollywood actors, and cricketers created accounts on Koo to boycott Twitter. This development occurred as tech startups worldwide are grappling with a funding shortage triggered by central banks’ monetary policy tightening. According to reports, Koo offered severance packages, including extended health benefits, to those who were laid off in recent months. In a recent interview, Koo co-founder Mayank Bidawatka stated that the company is financially strong and is working towards profitability through various monetization experiments.
Koo has introduced a loyalty program that allows users to earn coins by actively engaging on the platform. These coins can be redeemed for discounts on various items and services. Koo users can accumulate coins depending on their level of engagement with the micro-blogging platform, and can use them to avail of exclusive offers from different brands.
Koo has received funding from various investors, including Tiger Global, Accel, and Kalaari Capital. Tracxn reported that the company’s valuation was USD 273 million when it raised funds last year.
Meta, the parent company of Facebook, has initiated a second round of layoffs in order to cut costs. The company had previously laid off more than 21,000 employees in the first phase of job cuts. Based on posts by affected employees on LinkedIn, the latest round of layoffs is focusing on technical roles such as software engineering, user experience, graphics programming, and others.
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