ShareChat: Indian social media unicorn dismisses 20% of its employees

• Indian startup ShareChat has let go of almost 20% of its personnel.
• The most recent in a string of software companies to lay off employees is Sharechat.
• ShareChat is estimated to be worth $5 billion.

In an effort to reduce costs in the face of global headwinds, Indian startup ShareChat has let go of almost 20% of its personnel.

The owner of the video-sharing app, Mohalla Tech, claimed that worries over a protracted economic downturn led to the “tough” choice.

According to the financial website Moneycontrol, the company, which employs about 2,200 people, let go of hundreds of workers who held management positions.

The most recent in a string of software companies to lay off employees is Sharechat.

Many Indians who are employed in the US on visas like the H-1B have been impacted by the recent mass layoffs at tech giants like Meta, Twitter, and Amazon.

More than 24,000 workers worldwide have already been put off in 2023, according to the Layoffs.fyi website, which analyses tech job cutbacks. The data on the website, which was created by US-based businessman Roger Lee, comes from press releases.

Since January 1st, Unacademy, Moglix, upGrad, and LEAD, four tech start-ups in India, have all announced layoffs.

Investor pressure to slash costs is being applied to a number of Indian unicorns amid worries about their inflated valuations and the state of the global economy.

The first indigenous social network in India, Sharechat, provides material in Indian tongues. It has financial support from big companies like Google and Temasek and raised $300 million (£246 million) in new capital last year. Additionally, it has Tiger Global, Snap Inc., and Twitter as investors.

However, the business shut down Jeet11, an online fantasy game platform, in December and let go of close to 100 staff members.

A ShareChat representative said in a statement that “when capital gets expensive, organisations need to prioritise their bets and invest in the highest-impact ventures solely.”

“The decision to reduce employee costs was taken after much deliberations and in light of growing market consensus that investment sentiments will remain very cautious throughout this year,” the spokesperson added.

ShareChat, which has its headquarters in Bangalore (also known as Bengaluru), is estimated to be worth $5 billion and claims to have 180 million active users on a monthly basis.

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