ShareChat Layoffs: Google, Twitter-backed Indian unicorn fires 20% employees

ShareChat, an Indian social media start-up supported by notable investors such as Twitter, Google, Tiger Global and Temasek, reduced its workforce by 20 per cent. This round of layoffs will affect over 400 employees. ShareChat and short video platfrom Moj had removed 100 employees just a month prior to the latest round of layoffs. 
 
ShareChat confirmed the move in a statement claiming that the company needed to take on such actions in order to sustain a tough economic situation. The company spokesperson said, “ShareChat has been built through the relentless hard work and sincerity that our people bring to work every day. Since our launch eight years ago, ShareChat and our short video app Moj have seen incredible growth. However, even as we continue to keep growing, there have been several external macro factors that impact the cost and availability of capital."
 
The company claimed that it is keeping these factors in mind in order to prepare ShareChat to sustain through economic headwinds. The statement added, "We’ve had to take some of the most difficult and painful decisions in our history as a company and had to let go of around 20% of our incredibly talented employees who have been with us in this start-up journey."
 
ShareChat claims it has aggressively optimised costs before taking up the layoffs. The company said, "As capital becomes expensive, companies need to prioritise their bets and invest in the highest-impact projects only. Over the last six months, we have aggressively optimised costs across the board, including in marketing and infrastructure, among other cost heads and ramped up our monetisation efforts. The decision to reduce employee costs was taken after much deliberation." 
 
ShareChat and Moj plan to remain cautious in light of the economic turbulence in the tech sector and to gauge changes in investor sentiments. 
 
Employee Severance Pay
 
As part of the exit, impacted employees will be provided with the following financial package
● The company will pay the total salary for the notice period
● Two weeks’ pay as ex gratia for every year served with the company
● 100 per cent of variable pay till December 2022
● Health insurance policy cover will remain in place until June end 2023
● Employees will be allowed to retain their work assets, such as their laptops
● ESOPS will continue to vest as per schedule up till April 30th 2023, and employees will retain
all vested ESOPs
● Unused leave balance of up to 45 days will be encashed as per the current gross salary