ShareChat Lays Off 15% Of Workforce
The Bengaluru-based firm had a tough FY23, posting a loss of Rs 5,144.2 crore.
Mohalla Tech Pvt., the unicorn owner and operator of social network ShareChat and short video app Moj, has laid off another 15% of its workforce, translating to about 200 employees, as it attempts to cut costs amid swelling losses.
"ShareChat today undertook a strategic restructuring as part of its annual planning for the year 2024. The decision reflects the company's commitment to streamlining its cost base and achieving profitability within the next 4–6 quarters," a spokesperson told NDTV Profit.
"In alignment with our strategic vision, the company undertook a comprehensive restructuring effort to streamline operations, enhance productivity, and position the company for sustainable growth. As a result, the organisation has moved to a flatter organisational structure and prioritised product initiatives that resulted in a reduction in team sizes by roughly 15%," they said.
The Bengaluru-based firm had a tough FY23, posting a consolidated revenue from operations of Rs 552.7 crore in FY23 on a loss that widened to Rs 5,144.2 crore in FY23 from Rs 2,988.6 crore in FY22, according to data accessed via Tofler.
With this, the company's accumulated loss grew to Rs 10,539.2 crore.
In January this year, the company's troubles came to the fore with two of its co-founders, Bhanu Pratap Singh and Farid Ahsan, stepping down and the elimination of 20% of its workforce, equating to about 500 employees.
The company needed to "prepare to sustain" through "several external macro factors that impact the cost and availability of capital," it had said.
