ShareChat to Cut 5% of Workforce Following Annual Performance Review

ShareChat is reportedly set to lay off around 5% of its workforce, following its annual performance review, according to a report from MoneyControl. This translates to between 20 and 30 employees across various departments. The decision is part of the company’s ongoing efforts to optimize costs, and the final number of layoffs may exceed the initially projected 4% due to continued organizational adjustments.

A ShareChat spokesperson clarified that, as part of the company’s policy, about 3 to 4% of employees are rated at the lowest end of the performance spectrum each year and are asked to leave.

With a current workforce of between 530 and 550 employees, ShareChat expects its headcount to drop to around 500 after this round of layoffs.

This move aligns with ShareChat’s performance-based policy, which has led to steady reductions in its headcount in recent years. Over the past two years, the company has laid off more than 850 employees across four rounds of layoffs. In some cases, the company redistributes work, while in others, replacements are hired to maintain high performance levels.

Despite these layoffs, ShareChat is focused on financial optimization. The company reported a significant 67% reduction in its adjusted EBITDA losses, which dropped to ₹793 crore in FY24, compared to ₹2,400 crore in the previous year. Additionally, revenue from livestreaming grew 41% year-on-year, reaching ₹402 crore. The company also achieved an EBITDA margin of over 15% in October 2024, with its short video platform Moj operating profitably.

To strengthen its leadership, ShareChat recently appointed Nitin Jain, a former TikTok executive, as Chief Technology Officer. Despite the layoffs, the company plans to expand its team in areas such as acquisition marketing, with a goal of growing the team by 50%.