It said it's doubling down on advertising and live-streaming revenues, and aims to sail through "uncertain economic conditions" over the next two years and come out stronger.
"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 said. The company said it has aggressively optimised costs across the board over the last six months, and ramped up monetisation efforts. This big decision comes in the backdrop of Mohalla Tech shutting down its online fantasy gaming platform Jeet11 in December 2022, following which nearly 100 employees were laid off. "We've had to take some of the most difficult and painful decisions in our history as a company and had to let go of around 20% of our incredibly talented employees who have been with us in this start-up journey," a company spokesperson said today, adding that "as capital becomes expensive, companies need to prioritise their bets and invest in the highest-impact projects only". ShareChat is valued at $5 billion, and has more than 2,200 employees. Owned by Bangalore based Mohalla Tech Pvt Ltd., ShareChat and its short video app Moj is expected to lay-off around 500 people. The company, backed by tech giants like Google and Temasek, announced it will let go of 20 percent of its staff as it needs to prepare the company to sustain "several external macro factors that impact the cost and availability of capital". As investors, wary of high valuations in an uncertain stock market, continue pushing tech companies to cut costs, social media platform ShareChat today became the latest to downsize in anticipation of an impending recession.
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