ShareChat to trim workforce based on annual performance review
ShareChat's decision to lay off workers after its annual appraisal mirrors Facebook's plans of trimming up to 5% of its employees based on performance ratings.
Homegrown social media platform ShareChat is reportedly set to let go of approximately 20-30 employees, or 5% of its workforce, following its annual performance appraisal cycle.
The company employs around 530-550 people. "We conduct an annual performance appraisal cycle as part of our commitment to fostering a high-performing team. As a standard practice, we make adjustments to align our team with evolving business objectives and suited to meet our goals," a source close to the developments said.
"This exercise is not related to any cost-cutting measures but is a reflection of our ongoing efforts to maintain excellence and adaptability in a competitive and fast-paced environment," the person cited above added.
The development was first reported by Moneycontrol.
ShareChat's decision to lay off workers after its annual appraisal mirrors Facebook's plans of trimming up to 5% of its employees based on performance ratings, as per reports. Facebook's decision could affect roughly 3,600 jobs.
However, Manohar Singh Charan, Chief Financial Officer, ShareChat and Moj, denied that the company was undertaking any layoffs.
"We are in the middle of our annual appraisal cycle and as a part of our bar-raising process; we replace bottom performers every cycle. Less than 5% of our headcount is impacted by this. Most of these positions will be subsequently filled with replacements. The company is not undertaking a cost-cutting exercise at this point. Our App ShareChat is already fully profitable for the last three months and we are on the threshold of becoming profitable at the overall level as well. The company is actively hiring for selective key roles. We just onboarded a new CTO, hired a head of acquisition marketing and are evaluating candidates for several positions in tech," he said.
ShareChat reported improved financial performance for FY24, with significant reductions in operational losses. It reported Rs 718 crore in annual revenue for FY24, a 33% increase compared with Rs 540 crore in FY23.
With its core ShareChat app achieving profitability and the Moj app moving towards financial sustainability, the social media company is now focusing on strategic growth and potential acquisitions in the creator economy.
Its advertising revenue rose 23% YoY to Rs 315 crore in FY24, driven by diversification into mid-market and FMCG sectors. Its livestreaming business showed stronger momentum in the fiscal year, with a 41% revenue increase to Rs 402 crore.
Meanwhile, it reduced its adjusted EBITDA losses to Rs 793 crore, down 67% from Rs 2,400 crore in FY23. The total losses for the period stood at Rs 1,898 crore in FY24, down 63.1% from Rs 5,142 crore in FY23.
(The copy was updated to add a quote from Manohar Singh Charan.)
Edited by Kanishk Singh