Pocket FM Layoffs 2026: Audio Platform Downsizes Workforce by 10% Amid AI Expansion, More Job Cuts Likely by June

Audio series platform Pocket FM has reportedly initiated a fresh round of layoffs, affecting approximately 100 to 130 employees, or roughly 10% of its total workforce. The move comes as the company seeks to streamline its operations and improve "revenue per employee" despite experiencing significant growth in its global annual recurring revenue (ARR).

Efficiency Drives Latest Job Cuts

The layoffs, which surfaced in early May 2026, primarily target roles that the company has identified as redundant or underperforming under its new efficiency-focused mandate. Sources close to the development indicate that nearly 100 employees have already accepted severance packages and are currently serving notice periods without active roles. An additional 30 to 40 staff members have reportedly been placed on performance improvement plans. Internal access for many of these affected individuals is expected to be restricted by July 2026. While the company has officially described these changes as "role-specific" and "performance-related," reports suggest that a further 15% of the workforce could face cuts by the end of June. Cognizant Layoffs: IT Giant May Cut Up to 15,000 Jobs Globally Under ‘Project Leap’, India To Be Impacted.

Shift to AI and Contractual Restructuring

A significant factor behind the restructuring is Pocket FM’s aggressive pivot toward AI-led content creation. The company recently revealed that integrating artificial intelligence has slashed content production costs by over 95%—reducing the price of producing one hour of audio from $1,000 to approximately $50. Parallel to the full-time layoffs, the platform has moved over 2,000 contractual workers—including designers and content writers—to the payroll of Quess Corp, a business services provider. Management maintains this shift is not a cost-cutting measure but a strategic move to focus on core priorities and drive operational agility.

Strong Financials Amidst Workforce Reduction

The layoffs present a stark contrast to the company’s recent financial successes. CEO Rohan Nayak recently announced that Pocket FM has reached an ARR of $450 million, doubling its revenue in just 12 months. The platform is currently eyeing a fresh funding round with a valuation target between $1.5 billion and $2 billion. Tech Layoffs: 92,000 Affected As 80 Companies Cuts Jobs; Oracle, Amazon and Meta Lead.

Background and Market Pressure

Founded in 2018, Pocket FM has rapidly expanded its footprint, particularly in the U.S. market, which now accounts for nearly 70% of its revenue. However, the audio storytelling space remains hyper-competitive. With rivals like Kuku FM and Pratilipi also vying for market share, and tech giants like JioHotstar entering the short-form audio-visual segment, Pocket FM’s latest restructuring appears to be a preemptive move to sustain its "free cash flow positive" status and prepare for a potential public listing or major valuation jump in the coming year.

(The above story first appeared on LatestLY on May 07, 2026 01:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).