ShareChat, the Indian social media platform backed by Google and Temasek, has announced its fourth round of layoffs in the past two years.
The company plans to lay off approximately 5% of its workforce, impacting around 20-30 employees across various departments.
This decision follows an annual performance review and is part of an ongoing cost-cutting initiative.
ShareChat, which currently employs around 530-550 individuals, has seen its workforce reduced significantly from its peak of nearly 2,800 employees a few years ago.
The company has undertaken multiple rounds of layoffs since January 2023, cumulatively letting go of over 850 employees.
ShareChat Employees: Performance Review and Layoff Process
The recent layoffs are part of ShareChat’s annual performance review cycle.
According to a company spokesperson, every performance cycle typically results in the termination of 3-4% of employees who are rated at the bottom of the performance pyramid.
The company aims to finalize the process by the end of the month, reducing its headcount to approximately 500 employees.
ShareChat has been implementing various cost-cutting measures to improve profitability.
The company’s parent firm, Mohalla Tech, reported a 67% decline in adjusted EBITDA losses to ₹793 crore in FY24 from ₹2,400 crore in FY23.
Despite the layoffs, ShareChat has managed to achieve operational profitability, with its livestreaming business witnessing a 41% increase in revenues on a year-on-year basis.
Impact on Employees and Future Outlook
The layoffs have been a part of ShareChat’s performance philosophy for the last four years.
The company asks employees who are not meeting performance expectations or justifying their return on investment (ROI) to leave.
It then either redistributes or replaces their roles.
The company aims to continue its cost optimization strategy to remain competitive in the social media landscape.
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