Inside Koo’s Layoffs: Reasons and Reactions


As the world economy grapples with the pandemic and a sluggish pace of recovery, many companies are resorting to cost-cutting measures to stay afloat. One of the most significant moves taken by firms is the layoff of employees. In this blog, we will delve into the recent layoffs at Koo and shed light on the reasons behind the decision.

Company Information

Koo is an Indian social media platform that aims to provide a space for people to express their opinions in their mother tongue. Founded in March 2020, the company quickly gained popularity in the country and received backing from high-profile investors such as Tiger Global, Accel, and Kalaari Capital. The company raised $44 million in a Series B funding round, which put its valuation at $150 million.

Company Performance

Koo is said to have over 6 million registered users in India, and its android application has been downloaded over 5 million times from the Google play store. The company has positioned itself as an alternative to other social media giants, like Twitter and Facebook, by focusing exclusively on Indian languages.

Reasons for Layoffs

However, in August 2022, the company faced major downsizing as it laid off 40 employees working at its Bengaluru office, representing a Layoff% of 8%. The decision was met with surprise and criticism, especially as the company had only recently raised $44 million in funding.
The company’s spokesperson stated that the layoffs were necessary to optimize the work process and that they were part of the organization’s long-term strategy. The move was accompanied by a statement that read, “At Koo, we remain committed to growing our business sustainably, and these layoffs are a necessary step in moving forward.”

Reaction from Stakeholders

The announcement of layoffs at Koo raised concerns among investors and other stakeholders, with many questioning the company’s decision to opt for layoffs instead of alternative cost-cutting measures. Some employees expressed anger and disbelief at the news on social media platforms, with many calling for transparency from the company’s management.


In conclusion, the recent layoffs at Koo have raised questions about the company’s future and the sustainability of its business model. As more firms adopt similar measures, it remains to be seen how employees and stakeholders will react. However, the company’s spokesperson has made it clear that Koo remains committed to growing its business sustainably, and these layoffs are just one part of their overall strategy.

Leave a Comment

Scroll to Top