As part of performance review cycle, ShareChat eliminates 5% of its workforce
According to reports, ShareChat, a vernacular social media platform, is laying off roughly 5% of its employees, the second round of layoffs in as many months.
As part of its mid-year performance cycle, ShareChat laid off 5% of its employees in August 2024. In 2023, the company laid off 700 workers in two stages and implemented a number of cost-cutting measures.
ShareChat currently employs between 530 and 550 people, and approximately 5% of them will be let go as part of an annual review process that is scheduled to wrap up later this month, according to Moneycontrol, which broke the story first.
“The company is not undertaking any layoffs. We are in the middle of our annual appraisal cycle and as a part of our bar raising process, we replace bottom performers every cycle. Less than 5% of our headcount is impacted by this. Most of these positions will be subsequently filled with replacements. The company is not undertaking a cost-cutting exercise at this point,” said Manohar Singh Charan, Chief Financial Officer, ShareChat & Moj.
“Our App ShareChat is already fully profitable for the last three months and we are on the threshold of becoming profitable at the overall level as well. The company is actively hiring for selective key roles. We just onboarded a new CTO, hired a head of acquisition marketing and are evaluating candidates for several positions in tech,” added Charan.
The company, which is led by Ankush Sachdeva, raised $65 million in debt in 2024 in two installments. Tencent, Moore Strategic Ventures, Alkeon Capital, and Twitter (now X) are among the investors who have contributed approximately $1.3 billion to ShareChat.
From FY23’s operational revenue of Rs 552.73 crore to Rs 718.1 crore in the most recent fiscal year, ShareChat’s revenue grew by 29.9%. In FY24, the company’s losses dropped 41.4% to Rs 1,898.94 crore due to a mild increase in scale and a decrease in expenses.
From 24,000 layoffs in 2023 and 20,000 in 2022, the number of layoffs in 2024 has drastically decreased to 4,700 employees. Layoffs are predicted to decline further this year as the funding recovery gets under way.
