Layoff at ShareChat: 200 employees go jobless as the company streamline its cost base
ShareChat, a social media platform has implemented a strategic restructuring plan which has resulted in the layoff of approximately 200 employees, which further constitute about 15% of its workforce. Mohalla Tech, the parent company which also owns Moj, the short video entertainment app has stated that the decision has been a part of a broader initiative to streamline costs and achieve profitability within the next 4-6 quarters.
Company’s official statement
ShareChat’s spokesperson has issued a statement where he explains the strategic restructuring as a part of the annual planning for 2024. The social media platform aims to streamline operations, enhance productivity and position itself for sustainable growth. The restructuring further involves the adoption of a flatter organizational structure and prioritisation the specific product initiatives, leading to a reduction in team sizes by around 15%.
Financial considerations and valuation
Although ShareChat has undergone internal changes, it is further reported in the final stages of securing approximately USD 50 million in funding, along with a valuation which has anticipated to fall below USD 1.5 billion.
The existing investors including Temasek and Tencent have reportedly engaged in advanced talks for the new funding round.
Financial performance
Mohalla Tech has reported a significant increase in losses, which has surpassed 38% to reach Rs 4,064 crore during FY23 when compared to Rs 2,941 crore in FY22. Despite the losses, the company has experienced a noteworthy 62% surge in revenue from operations, reaching around Rs 540.21 crore, from Rs 332.69 crore in FY22.
This strategic move by ShareChat aligns with its broader vision for sustained growth and financial stability, signalling a commitment to adapt to market dynamics and improve operational efficiency.
ALSO READ: Generative AI smartphones shipments to exceed by 100 mn in 2024 – Report
Inputs from IANS
Latest Technology News
ShareChat, a social media platform has implemented a strategic restructuring plan which has resulted in the layoff of approximately 200 employees, which further constitute about 15% of its workforce. Mohalla Tech, the parent company which also owns Moj, the short video entertainment app has stated that the decision has been a part of a broader initiative to streamline costs and achieve profitability within the next 4-6 quarters.
Company’s official statement
ShareChat’s spokesperson has issued a statement where he explains the strategic restructuring as a part of the annual planning for 2024. The social media platform aims to streamline operations, enhance productivity and position itself for sustainable growth. The restructuring further involves the adoption of a flatter organizational structure and prioritisation the specific product initiatives, leading to a reduction in team sizes by around 15%.
Financial considerations and valuation
Although ShareChat has undergone internal changes, it is further reported in the final stages of securing approximately USD 50 million in funding, along with a valuation which has anticipated to fall below USD 1.5 billion.
The existing investors including Temasek and Tencent have reportedly engaged in advanced talks for the new funding round.
Financial performance
Mohalla Tech has reported a significant increase in losses, which has surpassed 38% to reach Rs 4,064 crore during FY23 when compared to Rs 2,941 crore in FY22. Despite the losses, the company has experienced a noteworthy 62% surge in revenue from operations, reaching around Rs 540.21 crore, from Rs 332.69 crore in FY22.
This strategic move by ShareChat aligns with its broader vision for sustained growth and financial stability, signalling a commitment to adapt to market dynamics and improve operational efficiency.
ALSO READ: Generative AI smartphones shipments to exceed by 100 mn in 2024 – Report
Inputs from IANS
Latest Technology News
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