Google-backed ShareChat cuts 20% Workforce to ‘Sustain Through Headwinds’

Just one month after removing more than 100 positions, ShareChat, an Indian social media business financed by Twitter, Google, Tiger Global, and Temasek, has let go of 20% of its workforce, or over 400 workers. On Monday morning, the startup told its staff about the choice. According to a person familiar with the situation, it deleted all of the affected employees' data and deactivated access to their accounts. Due to the closure of its fantasy sports portal Jeet11, ShareChat fired approximately 5% of its 2300 employees in December. An internal message from ShareChat CEO Ankush Sachdeva explaining the change in policy stated that it was made to "protect the financial health and longevity" of the firm. The CEO added that the startup "underestimated the duration and depth of the global liquidity squeeze and overestimated the market growth in the highs of 2021." The Indian publication Economic Times was the first to publish the memo and firing. A ShareChat representative confirmed the layoff in a statement, adding that the choice was made "after careful consideration and in light of the developing market consensus that investing sentiments will remain highly cautious throughout this year." The availability and cost of financing have been impacted by a number of external macro issues, even though we are still expanding, the representative stated. We had to make some of the most difficult and painful decisions in the company's history and let go of almost 20% of our highly bright staff members who had supported us during this start-up process. Additionally, according to the spokesman, the business "aggressively optimized costs across the board, including in marketing and infrastructure, among other cost heads. No specifics on the roles affected were provided. For each year they worked for the business, the impacted workers will get two weeks of pay as an appreciation bonus in addition to their full wage for the notice period. According to the startup, the employees will continue to get 100% of their variable compensation until December 2022, and their health insurance coverage will last through the end of June. Additionally, the startup will permit affected employees' ESOPs to continue vesting according to plan until April 30.

"We are working harder to generate more revenue through live streaming and advertising. By making these adjustments, we hope to weather the unsure global economic climate in 2023 and 2024 and emerge more robust, the spokeswoman said.