ShareChat Trims Workforce by 15% in Ongoing Cost-Cutting Efforts for Profitability

27 Dec 2023 , 01:10 PM

ShareChat, a social media unicorn, has initiated another round of layoffs, affecting 200 employees, which constitutes approximately 15% of its workforce.

This move is part of the company’s ongoing efforts to reduce costs and achieve profitability within the next six quarters.

In January, the parent company, Mohalla Tech Pvt Ltd, which oversees ShareChat and Moj platforms, had previously laid off 500 employees, representing 20% of its workforce.

The co-founders, Bhanu Pratap Singh and Farid Ahsan, stepped down from executive roles in the same month.

ShareChat described the recent layoffs as a strategic restructuring aligned with its annual planning for 2024, emphasizing the commitment to streamline costs and achieve profitability in the coming 4-6 quarters.

The restructuring effort includes a move towards a flatter organizational structure, prioritizing product initiatives, and resulted in a 15% reduction in team sizes.

ShareChat reassured its commitment to core values and the well-being of employees during this process.

The unicorn, which achieved a $5 billion valuation last year, is reportedly in the process of securing around $50 million in new funding, potentially reducing its valuation to about $1.5 billion.

According to reports, ShareChat’s revenue from operations increased by 59.4% to Rs 533 crore in FY23, while losses experienced a nominal 8.4% increase to Rs 3,241 crore.

ShareChat had shut down its fantasy gaming platform, Jeet11, in early December last year, resulting in a 5% workforce reduction.

For feedback and suggestions, write to us at [e-mail]