Google-backed ShareChat confirms layoffs, says around 400 employees will lose jobs

“The decision to reduce employee costs was taken after much deliberation and in light of the growing market consensus that investment sentiments will remain very cautious throughout this year,” the spokesperson added.

The layoff comes amid a tough time for Indian startups, which is cutting workforce previously thought to be secure and high-paying. Hiring freezes and layoffs have impacted the tech industry at large – both at home and in Silicon Valley, where most Big Tech companies including Google and Apple are based. Ola, OYO, Dunzo, Blinkit and Byjus have all announced layoffs in recent months, citing the external macro environment and lack of funding.

ShareChat’s parent company says the affected employees will receive the total salary for their notice period and two weeks’ pay as ex gratia for every year served with the company. The employees will also get 100 per cent of variable pay till Dec 2022 and health insurance policy cover will remain in place until June end 2023. The startup will also let the ESOPS of its affected employees continue to vest as per schedule up till April 30 2023.

In December last year, ShareChat laid off 5 per cent of its staff of 2300 employees, mostly affecting employees working on the fantasy gaming platform, Jeet11. Mohalla Tech is backed by Google, Twitter, Tiger Global and Temasek. ShareChat, a short-form video-sharing platform, has seen massive popularity since the pandemic but it seems the growth has now plateaued amid tough competition from Instagram.