ShareChat is set to lay off around five per cent of its workforce, following its annual performance review, reported MoneyControl.
Reportedly, this amounts to between 20 and 30 employees across various departments. The decision comes as part of ongoing efforts to optimise costs, with the final figure potentially exceeding the projected four per cent due to continuous organisational adjustments.
A ShareChat spokesperson explained that, as a company policy, roughly three to four per cent of employees are rated at the lowest end of the performance spectrum each year and are subsequently asked to leave, the report added.
The company, which currently employs between 530 and 550 staff members, expects its workforce to shrink to approximately 500 following the latest round of layoffs.
According to the publication, this move is consistent with ShareChat’s performance-based policy, which has seen the company reduce its headcount steadily in recent years. The platform has already let go of over 850 employees in four separate rounds of layoffs over the past two years. The spokesperson noted that in certain cases, work is redistributed, while in others, the company hires replacements to maintain high performance levels.
Despite the layoffs, ShareChat is pursuing a strategy of financial optimisation, with a notable reduction in losses. The company reported a 67 per cent drop in adjusted EBITDA losses, which fell to ₹793 crore in FY24 from ₹2,400 crore the previous year, stated the report.
Additionally, its revenue from livestreaming grew by 41 per cent year-on-year, reaching ₹402 crore. The company also achieved an EBITDA margin exceeding 15 per cent in October 2024, with its short video platform, Moj, reportedly operating profitably.
In a bid to strengthen its leadership, ShareChat recently appointed Nitin Jain, a former TikTok executive, as Chief Technology Officer. Despite the layoffs, the company continues to expand its team in specific areas, including acquisition marketing, with plans to grow the team by 50 per cent.
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