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ShareChat to lay off 5% of workforce after annual performance review

ShareChat to lay off 5% of workforce after annual performance review

ShareChat to lay off 5% of workforce after annual performance review
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15 Jan 2025 9:03 PM IST

Social media platform ShareChat is set to reduce its workforce by approximately 5%, impacting 20-30 employees, as part of its annual performance review process, according to a report by MoneyControl. This move aligns with the company's cost-cutting and financial optimization strategy.

Currently employing between 530 and 550 staff members, ShareChat anticipates its workforce will shrink to around 500 after this round of layoffs. The company spokesperson revealed that its performance-based policy consistently evaluates employees, with 3-4% being rated at the lowest performance tier each year and subsequently let go.

The layoffs are not unprecedented for ShareChat, which has steadily reduced its headcount over recent years. In the past two years alone, the platform has let go of over 850 employees across four rounds of layoffs. While some positions are eliminated, others see work redistributed or replaced to maintain operational efficiency.

Despite these workforce reductions, ShareChat is making strides in financial performance. It reported a significant 67% reduction in adjusted EBITDA losses, which dropped to ₹793 crore in FY24 from ₹2,400 crore in the previous year. Revenue from livestreaming has also surged by 41% year-on-year, reaching ₹402 crore. Notably, the company's short video platform, Moj, has achieved profitability, with ShareChat reporting an EBITDA margin exceeding 15% as of October 2024.

In a bid to bolster leadership, ShareChat recently appointed Nitin Jain, a former TikTok executive, as its Chief Technology Officer. While layoffs occur in some areas, the company continues to expand its team in others, including acquisition marketing, with plans to grow that department by 50%.

This strategic balancing act demonstrates ShareChat's commitment to long-term sustainability and performance optimization as it navigates a competitive market.

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