Pocket FM, an audio series platform, has made significant changes to its workforce, laying off approximately 100 employees, which constitutes around 10% of its total staff. The layoffs primarily affected the content team, as the company assessed employee performance against role-specific criteria.
The company clarified that these layoffs were not part of a broader company-wide reduction but rather role-specific transitions. In conjunction with these layoffs, Pocket FM has also moved about 2,000 contractual employees, including designers and content writers, to the payroll of Quess Corp, a hiring platform. This strategic move aims to consolidate costs and enhance operational efficiency.
Operational Changes
Pocket FM emphasized that working with external partners like Quess Corp is a standard practice for managing workforce operations effectively. This partnership is intended to streamline costs and focus on core business priorities.
Recent Financial Performance
Despite the layoffs, Pocket FM recently reported reaching an annual recurring revenue (ARR) of $450 million, driven by its innovative storytelling system. The platform operates in over 20 countries and has experienced significant growth in revenue, which increased by 68% year-on-year in FY25.
Competitive Landscape
Pocket FM competes with various content platforms, including Spotify, Kuku FM, and Pratilipi. Kuku FM recently secured $85 million in funding, while Pratilipi raised $20 million, indicating a competitive and rapidly evolving market.
Conclusion
The workforce adjustments at Pocket FM reflect a focused strategy on performance and efficiency, aligning with the company's growth trajectory in the audio content space.
