ShareChat lays off 200 employees in a cost-cutting move
ShareChat, a prominent social media platform, has announced the layoff of nearly 200 employees, which accounts for 15% of its workforce. This move is aimed at cutting costs and becoming profitable within the next four to six quarters. The company's net losses have surged by 72%, from Rs. 2,989 crore in FY22 to Rs. 5,144 crore in FY23, due to increasing server rents, financing costs, and foreign exchange losses.
Strategic restructuring for profitability
Today, ShareChat revealed its strategic restructuring plan for 2024, which includes these layoffs. The company explained, "The decision reflects the company's commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters." This restructuring is designed to improve operations, boost productivity, and set the stage for sustainable growth by adopting a flatter organizational structure and prioritizing product initiatives.
Previous layoffs and executive changes
This is not the first time ShareChat has resorted to layoffs in an effort to reduce expenses. Earlier this year, the company dismissed roughly 600 workers in a similar move. Additionally, co-founders Farid Ahsan and Bhanu Pratap Singh stepped down from their executive roles.
