ShareChat has laid off 20% of its workforce citing “macro factors that impact the cost and availability of capital”, a company spokesperson told The Hindu.
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The company, in a statement, shared that it has aggressively optimised costs across the board, including in marketing and infrastructure.
ShareChat will provide employees total salary for notice periods, two weeks’ pay as ex gratia for every year served, while allowing employees to retain their work assets.
Employees will also receive health coverage until June 2023, with the ability to encash their leave balances of up to 45 days as per their gross salary. Employees’ stock options will also continue to vest up till April 2023, the company shared.
The move comes months after Mohalla Tech Pvt., the Bangalore-based parent company for ShareChat, which also owns Moj, short videos app, received nearly $300 million in funding from Alphabet Inc.’s Google.
ShareChat is currently valued at about $4.9 billion and has joined the likes of other Indian unicorns like Unacademy, Moglix, upGrad, and LEAD, who have all laid off employees since the start of 2023.