ShareChat, a short video-sharing platform backed by Google and Temasek, will terminate job of around 20 percent of its employees to cut costs, Reuters news report said.
“There is a growing market consensus that the current global economic downturn would be a much more sustained one, and we thus have to, unfortunately, seek more cost savings by reducing our team size,” ShareChat Chief Executive Officer Ankush Sachdeva said in an internal memo.
Indian startups raised $24 billion last year, a third lesser than in 2021, according to Venture Intelligence.
ShareChat said it had over the last six months aggressively optimized costs across its business including in marketing and infrastructure.
“As capital becomes expensive, companies need to prioritise their bets and invest in the highest-impact projects only,” a ShareChat spokesperson said. “We aim to sail through the uncertain global economic conditions over 2023 and 2024.”
Bengaluru-based ShareChat has more than 2,200 employees and is spreading its team globally across India, the United States and Europe.
ShareChat confirmed employees would get two weeks’ pay for every year served and employee stock ownership plans will continue to vest as per schedule until April 30.