Google and Temasek backed social media unicorn ShareChat is reportedly set to lay off around 5% of its workforce, amounting to 20-30 employees across various departments, following its annual performance review, according to Moneycontrol.
ShareChat, which currently employs around 530-550 individuals, aims to reduce its headcount by 3-4% as part of its appraisal cycle. A company spokesperson confirmed the development, stating that the process involves identifying employees who fall in the bottom tier of performance ratings.
“We have just kickstarted our annual appraisal cycle. Every performance cycle, as a practice, roughly 3-4% of employees are rated at the bottom of the pyramid in terms of performance. Those employees are asked to leave,” the spokesperson told Moneycontrol.
The company is expected to finalize the process by the end of the month, with its headcount reducing to approximately 500 employees—significantly lower than its peak of 2,800 employees a few years ago.
A History of Cost-Cutting Measures
ShareChat has laid off over 850 employees across four rounds of layoffs in the past two years. In August 2024, the company let go of 30-40 employees following its bi-annual performance review after raising $16 million in convertible debt. Similarly, in December 2023, the platform laid off 200 employees in a cost-cutting move, while January 2023 saw over 600 employees exit as part of restructuring efforts.
The spokesperson also highlighted the company’s ongoing cost-efficiency strategy, explaining that underperforming employees are either replaced or their roles are redistributed. “It has been part of our performance philosophy for the last four years. People who are not pulling their weight or are not justifying their ROI are asked to leave,” they added.
The layoffs come amid efforts by ShareChat to streamline operations and optimize resources in a competitive social media landscape.