After cutting over 100 positions a month ago, the Indian social media firm ShareChat, financed by Twitter, Google, Tiger Global, and Temasek, has now laid off 20% of its staff, or over 400 people.
On Monday, the company notified its staff of the decision. The company disabled the accounts of affected workers and deleted all of their data.
After discontinuing its fantasy sports website Jeet11 in December, ShareChat had to let off approximately 100 of its 2300 employees, or 5% of the total.
In an internal message, ShareChat CEO Ankush Sachdeva explained the decision by saying it was made to “secure the financial health and longevity” of the company. According to the company’s top executive, the young business “overestimated the market growth in the highs of 2021 and misjudged the duration and intensity of the worldwide liquidity crisis.” The Indian publication Economic Times was the first to reveal the memo and the termination.
With “much thought and in light of the developing market consensus that investing attitudes would remain quite cautious throughout this year,” ShareChat made the decision to lay off employees “after considerable consideration.”
ShareChat and our short video app, Moj, have had phenomenal growth since their respective launches eight years ago. The cost and availability of finance have been affected by various external macro issues, the spokesman noted, even while the company’s expansion continues.
With these things in mind, we need to get the business ready to weather these storms. As a result, we had to make some of the toughest and most painful decisions in our company’s history, including laying off almost 20% of the brilliant people who have been with us from the beginning of our start-existence. up’s
The business, according to the spokesman, has “aggressively cut costs across the board, particularly in marketing and infrastructure, among other cost areas and stepped up our monetisation efforts.”
No information was given on which roles will be affected.
All impacted workers will be paid in full for their notice period, plus two additional weeks’ income for each year they were with the firm. The company has assured its workers that they will be paid in full for all variable compensation until December 2022 and that their health insurance would be maintained until the end of June.
The business will also allow affected workers’ ESOPs to vest according to their schedules until April 30.
We are putting more emphasis on advertising and live broadcasting to increase money. Our hope is that by making these adjustments in 2023 and 2024, we will be able to weather the storm of the global economic downturn and emerge stronger.
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