Google-backed ShareChat fires 600 employees

Google-backed social media startup ShareChat has fired 20 percent of its workforce, around 600 employees.

Reports said that during the last few days, ShareChat parent, Bangalore-based Mohalla Tech Pvt has laid off around 600 out of its 2100 employees from senior management and mid-to-junior management.

According to reports, the company stated that it has laid off around 20 percent of its workforce or about 500 employees, but insiders claim the number to be closer to 600.

The employees were informed of the layoffs via email and a company announcement on Slack informed the unaffected employees that those reading the message were not affected by the action.

Quoting anonymous sources, reports said that the layoffs were a result of excessive hiring after several funding rounds, adding that access to fired employees has been cut off.

The layoffs are believed to be a result of cost-cutting by heavily-funded startups who are anticipating cut in funding in coming months.

Pertinently, the downsizing comes just six months after the company raised 255 million dollars in funding.

As per company policy, the terminated employees will receive 100 percent of their variable salary until December 2022. They will also receive the total the total salary for the notice period and two weeks’ pay as ex-gratia for every year served.

The ex-employees will get to keep their work assets like laptops also keep their health insurance policy till June 2023.

Confirming the developments, Mohalla Tech said that the terminated employees can en-cash unused leave balances of up to 45 days as per the current gross salary. Additionally, their stock options will continue to vest until April 30, 2023, and they will retain all vested employee stock option plans (ESOPs). .

In December last year, ShareChat fired 115 employees when the company shut down its fantasy sports platform Jeet11.

ShareChat’s parent company, Mohalla Tech is currently valued at around 5 billion dollars and has the backing of tech giants like Google and Temasek Holdings.

ShareChat and its short video sharing app Moj saw an enormous rise in popularity following TikTok ban in India. Currently, the two platforms have an estimated user base of around 340 million.