ShareChat Layoffs: Social Media Firm Plans To Fire 5% Employees Across Departments: Report
Over the past two years, ShareChat has laid off more than 850 employees in at least four rounds. In August 2024 the social networking platform let go of about 30-40 employees
Social media firm, ShareChat is reportedly planning to fire around 5 per cent of its workforce, translating to approximately 20-30 employees across various departments, following its annual performance review. ShareChat which currently employs 530-550 people, will be reducing its workforce by around 5 per cent as part of its annual performance review, set to conclude later this month, according to a Moneycontrol report.
A company spokesperson confirmed to the publication that the reduction will be around 4 per cent, though the final figure could be higher as ongoing cost-cutting measures continue.
“We have just kickstarted our annual appraisal cycle. Every performance cycle, as a practice, roughly 3-4 percent of employees are rated at the bottom of the pyramid in terms of performance. And those people are asked to leave,” a company spokesperson said in the report.
By February, Google and Temasek-backed firm's workforce will be reduced to 500 employees, a significant decrease from its peak of approximately 2,800 employees a few years ago, reveals the report.
“In some cases, we can manage by redistributing the work, while in others we do replacement hiring. It has been part of our performance philosophy for the last four years now. People who are not pulling their weight, or are not justifying their ROI (return on investment) are asked to leave and we replace them,” the spokesperson added.
Over the past two years, ShareChat has laid off more than 850 employees in at least four rounds. In August 2024, following its bi-annual performance review, the social networking platform let go of about 30-40 employees, roughly 5 per cent of its workforce, shortly after raising $16 million in convertible debt. Additionally, ShareChat reduced its headcount by 200 employees in December 2023 as part of a cost-cutting initiative. Earlier, in January 2023, the company had also dismissed over 600 employees.
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