homebusiness Newscompanies NewsLayoffs at Sharechat: Google and Temasek backed platform asks 20% of its employees to go
Layoffs at Sharechat: Google and Temasek backed platform asks 20% of its employees to go
ShareChat, a short video-sharing platform backed by Google and Temasek, cut 20 percent of its workforce to stave off external macro headwinds.
ShareChat, a short video-sharing platform backed by Google and Temasek, cut 20 percent of its workforce as several external macro factors are impacting cost and availability of capital and thus the firm needs to prepare to sustain through these headwinds, it said on Monday.
“The decision to reduce employee costs was taken after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year,” a ShareChat spokesperson said.
It explained that as capital becomes expensive, companies need to prioritise bets and invest in the highest-impact projects only. Over the last six months, the firm has aggressively optimised costs across the board, including marketing and infrastructure, among other cost heads and ramped up our monetisation efforts, according to the firm’s statement.
Sharechat, meanwhile, is doubling down on efforts behind advertising and live-streaming revenues, it said.
Employees impacted by the ShareChat layoff will get the total salary for the notice period, two weeks’ pay as ex gratia for every year served with the company and 100 percent of variable pay till December 2022.
The firm’s health insurance policy cover will remain in place until June end 2023 and employees will be allowed to retain their work assets, such as their laptops. Also, ESOPS will continue to vest as per schedule up till April 30, 2023, and employees will retain all vested ESOPs.
Employees who have unused leave balance of up to 45 days can encash it as per their current gross salary, the company confirmed.
The mass layoff, the trend of which began in 2022, come at a time when startups, especially tech-based ones, are facing increasing pressure from investors to cut costs.
The Bengaluru-based company is valued at $5 billion, has more than 2,200 employees and is "spreading its team globally across India, USA and Europe," according to its website.
According to Reuters, Indian startups raised $24 billion last year, a third lesser than in 2021, and have let go thousands of employees in recent months to cut costs and become profitable.
(Edited by : C H Unnikrishnan)
First Published: Jan 16, 2023 2:08 PM IST
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