Bengaluru, January 16: ShareChat, an Indian social media platform, plans to lay off 5% of employees from its workforce as a part of its annual performance review. Mohalla Tech-owned ShareChat is backed by tech giants like Google and Temasek. However, as a part of its yearly review based on the performance of the employees, the company will reduce some underperforming staff members.

Bengaluru-based social media firm has followed the trend of job cuts, as other companies, including Microsoft and Meta, announced job cuts. Reports suggest that the latest round of ShareChat layoffs will impact around 20 to 30 employees. By letting go of a few employees, the company will focus on improving its operational efficiency and overall profitability. Microsoft Layoffs: Tech Giant Lays Off Employees in Security, Sales and Gaming Division Amid Strategic Measures Not Linked to Performance Job Cuts.

Reports said that this is the fourth tech layoff implemented by the social media firm in the past two years. Previously, the company boasted around 2,800 people in its workforce; however, over time, the company shrunk them to around 550. A ShareChat spokesperson said that the job cuts were not related to the financial problems but were part of an annual performance review to ensure that the company had a high-performing team. 

Despite implementing a workforce decision, the company will reportedly hire more people for key roles. Mohalla Tech also manages the Moj platform for sharing video content online and conducts two performance reviews a year as a part of efficiency. ShareChat posted reduction losses after EBITDA to 67% at INR 793 crore in FY24, around INR 2,400 crore in FY23. The firm's revenues rose 41% YoY at INR 402 crore for the same period. Meta Layoffs: Mark Zuckerberg Confirms Laying Off Around 3,600 Lowest Performing Employees From Global Workforce, Says 2025 To Be ‘Intense Year’.

The reports suggested that despite laying off some underperforming employees, social media firm ShareChat would continue to hire more people and expand its operations. ShareChat recently hired a new CTO (Chief Technology Officer), Nitin Jain, and initiated a 50% expansion of its acquisition marketing team. 

(The above story first appeared on LatestLY on Jan 16, 2025 05:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).