Indian social-media platform, ShareChat, supported by Google and Temasek, is set to reduce its workforce by approximately five per cent, impacting 20-30 employees. This move follows the company’s annual performance review and reflects its ongoing cost optimisation measures.
ShareChat currently employs around 530 to 550 people.
The layoffs target employees rated at the bottom of the performance scale during the appraisal cycle. This approach is part of ShareChat’s staffing strategy, which emphasises performance-based workforce adjustments.
After the cuts, the company’s headcount will drop to approximately 500, a significant decline from its peak of nearly 2,800 employees a few years ago.
Over the past two years, ShareChat has conducted multiple rounds of layoffs, reducing its workforce by more than 850 employees. These reductions included a five per cent cut in August 2024 following a bi-annual performance review and other rounds in December 2023 and earlier in 2023, affecting over 600 employees. As of October 2024, ShareChat declared itself fully profitable with an EBITDA margin exceeding 15 per cent.
Meanwhile Moj, another platform under Mohalla Tech, achieved operational profitability, covering all costs except salaries, and is expected to be fully profitable by the end of FY25.
The company has clarified that the current layoffs are unrelated to its profitability drive. Instead, the move reflects a strategic focus on efficiency, ensuring that resources are allocated effectively while maintaining a lean and performance-driven workforce.
