Social media giant ShareChat has initiated a strategic workforce restructuring, resulting in the departure of approximately 200 employees, equivalent to 15% of its workforce. The move is part of the company’s annual planning for 2024, aiming to trim costs and achieve profitability within the next four to six quarters.
ShareChat announced the decision on December 20, emphasizing its commitment to streamlining operations and achieving financial sustainability in the specified timeframe. The company’s strategic vision includes a comprehensive restructuring effort to enhance productivity, streamline operations, and position the company for sustained growth. As a result, ShareChat has adopted a flatter organizational structure and prioritized specific product initiatives, leading to a 15 percent reduction in team sizes.
This move follows an earlier cost-cutting measure in which the company laid off around 600 employees earlier in the year. Notably, this restructuring effort aligns with ShareChat’s commitment to financial optimization, even as co-founders Bhanu Pratap Singh and Farid Ahsan stepped down from their executive roles.
Having attained unicorn status, ShareChat was valued at $1 billion in 2021, marking a significant achievement. During that year, it secured a collective funding of $913 million, the highest among all companies that joined the unicorn club in 2021.
Before the layoffs in January, ShareChat maintained a workforce of 2,200 employees. Following the recent round of layoffs, the company anticipates a reduction in total employees to approximately 1,500.
