ShareChat, which counts global tech giants Twitter and Google among its backers, has laid off a majority of its workforce in recent months. Following the layoffs, there are now just 400 employees remaining at the company. The abrupt move comes as ShareChat looks to pivot towards a more customer-focused model.
Following the announcement that it would be shutting down, the startup’s employees were devastated. Deactivating access to accounts and wiping out all data was the only way to ensure that none of them would have any way of recovering their possessions oremployment.
ShareChat, the company behind the popular social media platform Sharechat, laid off nearly 5% of its workforce in December after shutting down their fantasy sports platform Jeet11. The sudden layoffs came as a shock to many employees and caused some resentment. Some who lost their jobs allege that they were not given enough warning or made aware of other job opportunities that were available to them.
Ankush Sachdeva, the CEO of ShareChat, admitted in an internal memo that the startup had overestimated the market growth in 2021 and underestimated the duration and intensity of the global liquidity squeeze. In order to ensure financial health and longevity for ShareChat, this decision has resulted in layoffs of approximately 50% of its workforce.
After much deliberation, ShareChat have announced that they will be layingoff a significant number of employees in order to optimize their resources. This decision is reportedly based on the current market sentiment which predicts that investment will remain cautious throughout this year. With a decreasing amount of users and continued competition from rival chat platforms, this is likely to result in some difficult changes for those affected.
The spokesperson for ShareChat, a video app and messaging service, has cited external macro factors as the reason for the company’s need to seek outside investment. These factors include increases in costs for capital, which have forced companies such as ShareChat to look elsewhere for funding.
The Headwindssection describes how the company is preparing for a difficult future. They have had to let go of around 20% of their employees, which has been very difficult for them. However, they know it is necessary in order to sustain through these headwinds. This shows that the company is strong and committed to staying afloat.
In spite of the startup’s aggressive cost optimisation, its revenue growth has been slow. The spokesperson implied that this may be because the startup was not generating enough advertising revenues from users, or from sponsorships and paid content.
Many roles within an organization are impacted when a user is barred from accessing the corporation’s network. These roles can include, but are not limited to, the users’ managers, employees, and customers. Depending on the type of
While the startup is supportive of its employees, it feels that this termination was necessary in order to continue growing and developing. The startup wishes all of the employees the best for their future endeavors.
The startup plans to make up for the lost stock by granting ESOPs additional stock worth $5 million. This will let them continue vesting per their schedule up until April 30th, ensuring that these employees are still advantaged even after the company’s closure.
In recent years, revenue from advertising and live-streaming has accounted for a significant portion of YouTube’s revenue. However, these sources have been subject to uncertain global economic conditions in the past. With this change in strategy, YouTube aims to sail through these conditions and remain financially stable.
