ShareChat, the Bengaluru-based regional social-media platform, laid off 101 employees on May 20. The Company, which is backed by Twitter, has made this move in the face of uncertainties shrouding the advertising market.
An official e-mail informed the employees of the drastic cost-cutting measures the firm has had to resort to because of the pandemic severely impacting the advertising market.
The platform, which was launched just five years ago, is being forced to scale back in terms of certain aspects even while it plans to focus on only those areas and options that have potential for growth. Since the advertising market cannot be predicted this year, the Company will concentrate on restructuring its revenue teams. A leaner structure seems to be the only way out presently to ensure the sustainability of the firm.
The employees who have been asked to leave, can either opt to take two months of ‘garden leave’ or accept 50 per cent of their salary for four months. If they opt for the former, they will be allowed to stay home while still remaining on the rolls during the notice period. The employees will also receive a month’s ex gratia for each year of their tenure.
In addition, the employees will continue to enjoy the Company’s health insurance cover till the end of 2020. The timelines for the stocks they hold will also be extended till the end of 2020. ShareChat will also support the laid off staff in their search for other job opportunities. In fact, the Company has tied up with a professional resume builder to help create the employees’ resumes and LinkedIn profiles free of cost.
Competing with the likes of Facebook and TikTok, ShareChat has about 60 million monthly active users in the country. Oyo, Coca Cola, Pepsi, MTR and the Future Group have used the platform to advertise their products amongst the rural audiences.