Pocket FM has laid off around 100 employees across its content and product teams, accounting for roughly 10% of its workforce, according to reports by Entrackr citing sources familiar with the development.
The audio storytelling platform has internally categorised the exits as performance-related, though sources indicated that another round of cuts could affect up to 15% of the workforce by the end of June.
Most affected employees have reportedly accepted severance packages and are serving notice periods without active responsibilities, while a smaller group, reportedly numbering 30 to 40, has been placed on performance improvement plans. Internal system access for impacted staff is expected to be withdrawn by July 2026. Pocket FM has also moved nearly 2,000 contract workers, including designers, editors, and content writers servicing its US business, to the payroll of staffing firm Quess Corp.
Responding to queries from Entrackr, the company denied conducting company-wide layoffs and said the role-specific changes should not be read as broader restructuring. Pocket FM has reportedly stated that it regularly reviews employee performance and that its arrangement with external workforce firms is part of standard operational practice to improve efficiency. It also denied any plans for further job cuts.
The cuts come even as Pocket FM reports strong revenue momentum. Founded in 2018 by Rohan Nayak, Nishanth KS, and Prateek Dixit, the platform recently announced an annual recurring revenue of USD 450 million, doubling in 12 months, and posted FY25 revenue of ₹1,768 crore, up 68% year-on-year. The company is reportedly in talks to raise USD 100-120 million at a valuation of up to USD 2 billion. The United States now accounts for nearly 70% of Pocket FM’s revenue, and the Company has positioned itself as an AI-native global entertainment company competing with Spotify, Krafton-backed Kuku FM, and Pratilipi.
The downsizing fits a broader pattern across India’s startup ecosystem in 2026, where companies with strong revenue growth are simultaneously cutting headcount as they restructure around AI-led content and automation. The next test for Pocket FM will be how it balances investor expectations of a leaner organisation with employee morale ahead of its planned funding round.
