Homegrown social media company ShareChat (Mohalla Tech Pvt Ltd) has laid off 20 per cent of its workforce due to uncertain market conditions.
Backed by Twitter, Google, Snap and Tiger Global, ShareChat has about 2,300 employees, and the layoff will impact about 500 people at the company, according to reports.
“We are taking a very difficult decision today to part ways with around 20 per cent of our talented FTEs (full-time employees) to ensure the financial health and longevity of our company in the current uncertain macroeconomic environment,” said Ankush Sachdeva in a note to the employees.”In hindsight, we overestimated the market growth in the highs of 2021 and underestimated the duration and intensity of the global liquidity squeeze,” he added.
In addition, the company also announced a financial package for the affected employees.
The compensation package includes a payout for the notice period as well as an additional 15 days of monthly gross salary for each completed year of full-time service.
Moreover, the CEO’s note specifies a 100 per cent pro-rated bonus through December 31, 2022, as well as any unpaid bonuses as of the last working day.
In December 2022, ShareChat laid off less than 5 per cent of its employees after it shut down its fantasy sports platform called Jeet11.