Google-backed ShareChat cuts 20% workforce to ‘maintain by means of headwinds’ • robotechcompany.com
ShareChat, the Indian social media startup backed by Twitter, Google, Tiger International and Temasek, has laid off 20% of its workforce — or over 400 staff — only a month after eliminating greater than 100 roles.
The startup knowledgeable its staff concerning the choice on Monday morning. It deactivated entry to accounts and worn out all information of impacted staff, an individual accustomed to the event advised robotechcompany.com.
In December, ShareChat laid off almost 5% of its workforce of 2300 staff on account of shutting down its fantasy sports activities platform Jeet11.
Informing the brand new choice to its staff, ShareChat CEO Ankush Sachdeva mentioned in an inner word that the transfer was to “make sure the monetary well being and longevity” of the startup. The chief additionally famous that the startup “overestimated the market development within the highs of 2021 and underestimated the period and depth of the worldwide liquidity squeeze.” The word and layoff was first reported by Indian newspaper Financial Occasions.
In a press release shared with robotechcompany.com, a ShareChat spokesperson confirmed the layoff and mentioned that the choice was taken “after a lot deliberation and in gentle of the rising market consensus that funding sentiments will stay very cautious all through this yr.”
“Since our launch eight years in the past, ShareChat and our quick video app Moj have seen unbelievable development. Nonetheless, at the same time as we proceed to continue to grow, there have been a number of exterior macro components that affect the price and availability of capital,” the spokesperson mentioned.
“Protecting these components in thoughts, we have to put together the corporate to maintain by means of these headwinds. Due to this fact, we’ve needed to take among the most troublesome and painful choices in our historical past as an organization and needed to let go of round 20% of our extremely proficient staff who’ve been with us on this start-up journey.”
The spokesperson additionally claimed that the startup had “aggressively optimised prices throughout the board, together with in advertising and infrastructure, amongst different value heads and ramped up our monetisation efforts.”
Actual particulars on what roles are impacted weren’t disclosed.
The affected staff will obtain the full wage for his or her discover interval and two weeks pay as ex gratia for yearly they served the startup. The workers may even get 100% of the variable pay till December 2022 and their medical insurance coverage cowl will stay till the tip of June, the startup confirmed.
The startup may even let ESOPs of its affected staff proceed to vest per their schedule up till April 30.
“We’re doubling down on our efforts behind promoting and live-streaming revenues. With these modifications, we intention to sail by means of the unsure international financial circumstances over 2023 and 2024 and are available out stronger,” the spokesperson mentioned.
In accordance with Crunchbase, ShareChat has raised over $1 billion in over 15 funding rounds, together with its final fundraising of $300 million in a Collection H spherical in Might final yr.
