ShareChat sacks 20 % of total employees to sustain financially
The startup also confirmed the ESPO's of the impacted one's will be allowed to continue until April 13th.
18 January 2023
ShareChat terminate employees to maintain the revenue
20% of the employees were sacked by the startup just after a month of 100 role
Startup faces crises and wants to sustain the head wind to stand in the social media
ShareChat, an Indian social media startup backed by google, twitter, tiger global and Temasek sacks employees upto 20%, i.e., more than 400 employees just a month after reducing 100 roles in the company.
TechCrunch got the information from the impacted person stating that the startup deactivated the accounts of employees and all the data regarding them were deleted. Employees were informed about their termination on Monday morning.
ShareChat sacked 5% of its employees, that was in total of 2300 members in December as the effect of shutting down its fantasy sports platform jeet11.
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Executive's statement on this mass termination:
ShareChat CEO Ankush Sachdeva said to the employees that this mass termination of employees was to ensure and maintain the financial stability and longevity of the startup. Ankush also said that “overestimated the market growth in the highs of 2021 and underestimated the duration and intensity of the global liquidity squeeze.” This note and the layoff report was first given to India Newspaper Economic Times.
Why does ShareChat sack employees?
A spokesperson to TechCrunch shared that shareChat and its short video app Moj have seengreat success in this 8 year period. To maintain the growth and success despite the external macro factors trying to influence the growth of the startup by affecting the cost and the availability of capital.
On confirming the layoff the spokesperson also said that this decision was taken after much deliberation as the investment sentiments will remain very cautious this year. They were forced to remove 20% of their very talented employees who worked on their startup journey to sustain this headwind and to maintain their financial stability.
Exact details about the roles of the employees impacted were not given. Impacted employees will receive their total salary for the notice period and 2 weeks pay as ex gratia for every year they served the startup. They will also get the 100% pay till December 2022 and the health insurance will cover upto june. The startup also confirmed the ESPO's of the impacted employees will be allowed to continue until April 13th.
The spokesperson also stated that the startup is doubling down their revenues in advertising and live streaming and with these changes the startup will sail through the uncertain global economic changes to grow stronger in the year 2023 and the upcoming years.