On Monday, India’s ShareChat, a short video-sharing platform supported by Google and Temasek, reported that it had laid off around 20% of its staff in response to the mounting pressure from investors to reduce expenditure.
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ShareChat Chief Executive Ankush Sachdeva stated in an internal memo viewed by Reuters that, unfortunately, due to the increasing market agreement that the current global economic recession is likely to be a long-term one, we must endeavor to create more cost savings by diminishing our team size.
Source: Google
ShareChat, a Bengaluru-based company, is estimated to be worth $5 billion (approximately Rs. 40,700 crore). It currently has over 2,200 employees, and is “expanding its workforce to India, the United States and Europe,” as stated on its website.
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It was unclear if the company had implemented changes to its website following the layoffs, as investors have become increasingly cautious about high prices in an unsteady stock market that has had a major effect on tech shares worldwide. Last year, Indian startups raised a total of $24 billion (approximately Rs. 1,95,400 crore), a decrease of one-third from the previous year, and have been forced to dismiss thousands of employees in a bid to reduce costs and become profitable.
Source: Google
In 2020, Reuters reported that ShareChat’s parent company had gained a substantial sum of $300 million (approximately Rs. 2400 crore) from Alphabet’s Google, Times Group and Singapore’s Temasek Holdings, with the platform being valued at around $5 billion (approximately Rs. 40,700 crore).