Indian unicorn ShareChat has laid off around 20% of its workforce in a bid to cut costs amid global headwinds. Mohalla Tech, which owns the video-sharing app, said it made the “difficult” decision due to concerns about a sustained economic downturn. Indian social media unicorn ShareChat fires 20% of staff.
The company, which employs around 2,200 people, laid off hundreds of people who were in management roles, financial website Moneycontrol reported. Sharechat is the latest in a series of tech firms that have cut jobs recently.
According to the Layoffs.FYI website, which tracks tech job cuts, more than 24,000 workers around the world have been laid off just in 2023 so far. The website, set up by a US-based entrepreneur named Roger Lee, sources the figures from media announcements.
In December, however, the company shut down its online fantasy gaming platform Jeet11 and laid off nearly 100 employees. In a statement, a ShareChat spokesperson said that “as capital becomes expensive, companies need to prioritize their bets and invest in the highest-impact projects only”. Indian social media unicorn ShareChat fires 20% of staff.
“The decision to reduce employee costs was taken after many deliberations and in light of growing market consensus that investment sentiments will remain very cautious throughout this year,” the spokesperson added. ShareChat, which is based in Bangalore (also known as Bengaluru), is valued at around $5b and says it has around 180 million monthly active users.
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