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ShareChat lays off 20 per cent of its workforce

ShareChat lays off 20 per cent of its workforce

ShareChat has laid off 20 per cent of its workforce.

The India-based social media unicorn - which is believed to employ roughly 2,200 people - made the cuts in a cost saving measure.

Mohalla Tech, the video-sharing app’s parent company, trimmed management roles, according to Moneycontrol.com.

In December, the firm - which is the first social media company founded in India and is backed by tech firms Google and Twitter - laid off people working on their online gaming platform Jeet11.

A spokesperson for the company - which is based Bangalore and worth roughly $5 billion - said that "as capital becomes expensive, companies need to prioritise their bets and invest in the highest-impact projects only".

"The decision to reduce employee costs was taken after much deliberations and in light of growing market consensus that investment sentiments will remain very cautious throughout this year.”

The tech industry as a whole has been facing the impact of the economic slowdown - which has impacted the cost of their materials and ad revenue - like Meta, who have announced plans to lay off a considerable chunk of their workforce.

In November, Mark Zuckerberg wrote that the 11,000 job losses were "the most difficult changes we've made in Meta's history".

He added: "I know this is tough for everyone, and I'm especially sorry to those impacted,” as he thought the growth made during the height of the COVID-19 pandemic would be met.

"Many people predicted this would be a permanent acceleration. I did too, so I made the decision to significantly increase our investments."

Twitter - which was taken over by Elon Musk for $44 billion in late October 2022 - have also seen their workforce be cut in half.

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