ShareChat, supported by Google, reduces its workforce by 20% in order to'survive headwinds.'

ShareChat, an Indian social networking company backed by Twitter, Google, Tiger Global, and Temasek, has let off 20% of its staff, or around 400 employees, just one month after laying off more than 100 people. The startup informed its employees about the decision on Monday morning. According to a source close to the incident, it wiped all of the impacted employees' data and disabled access to their accounts. ShareChat let off around 5% of its 2300 workers in December as a result of the shutdown of its fantasy sports platform Jeet11. ShareChat CEO Ankush Sachdeva indicated in an internal memo that the policy change was implemented to "guard the financial health and longevity" of the company. The firm "underestimated the duration and severity of the global liquidity crisis and overestimated market growth in the highs of 2021," according to the CEO. The message and dismissal were originally reported in the Indian newspaper Economic Times. In a statement, a ShareChat spokesman acknowledged the layoff, adding that it was taken "after careful thought and in light of the growing market consensus that investment emotions would remain exceedingly cautious throughout this year." Even if we are currently expanding, the availability and cost of funding have been influenced by a variety of external macro challenges, according to the spokesman. We had to make some of the most difficult and painful decisions in the company's history, letting go of about 20% of our very talented employees who had helped us through the start-up phase. Furthermore, the company "aggressively optimised costs across the board, particularly in marketing and infrastructure, among other cost areas," according to the spokesman. There was no information supplied about the responsibilities that were affected. Furthermore, the firm will allow affected workers' ESOPs to continue vesting as planned until April 30.

We're working hard to increase revenue through live streaming and advertising. By adopting these changes, we intend to weather the uncertain global economic situation in 2023 and 2024 and emerge stronger, according to the spokesperson

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