Mohalla Tech, the parent company of Sharechat is about to lay off around 20 per cent of its workforce, which will be around 400 employees. The company confirmed the action in a letter sent to employees today.
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A ShareChat spokesperson has also confirmed the news of layoffs and said that the decision has been taken to prepare the company to deal with these adverse circumstances.
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The spokesperson has said that they are forced to take such painful decisions to reduce expenses. The company is working on growing market consensus.
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Several layoff stories have emerged this year—starting with Twitter, Meta, Amazon and others. Indeed, Indian startups are having a tough time, as hiring has stopped and layoffs have certainly affected the tech industry around the world.
Companies like Ola, Dunzo, Byjus, OYO and Blinkit have also announced layoffs in recent months due to lack of funds.
ShareChat’s parent company has further stated that the terminated employees will receive their total salary for their notice period and ex-gratia in the form of 2 weeks’ salary for the number of years of service in the organization.
The employees will get 100 per cent variable pay till December 2022 and the health insurance policy cover will continue till the end of June 2023.
In December last year, Sharechat reportedly laid off around 5 per cent of its workforce, which was around 2300 employees. Among those fired, they were mainly people working on a fantasy gaming platform called Jeet11.