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Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has laid off 200 of its workforce in a bid to streamline costs and achieve profitability within the next four-six quarters.
The Bengaluru-based unicorn has reduced its team size by 15 per cent in a bid to streamline operations, enhance productivity, and position the company for sustainable growth.
- Also Read: ShareChat lays off 20% of its workforce
The layoffs have impacted the start-up’s product functions, and more across other functions, going by unverified posts online.
“ShareChat, today, undertook a strategic restructuring as part of its annual planning for the year 2024. The decision reflects the company’s commitment to streamlining its cost base and achieving profitability within the next 4-6 quarters,” said the company in a statement.
“In alignment with our strategic vision, the company undertook a comprehensive restructuring effort to streamline operations, enhance productivity, and position the company for sustainable growth. As a result, the organisation has moved to a flatter org structure and prioritised product initiatives that resulted in a reduction in team sizes by roughly 15 per cent,” the statement added.
Layoff in January
The layoff exercise came almost 11 months after ShareChat fired around 500 employees or about 20 per cent of its workforce.
The retrenchments in January this year came on the back of ShareChat parent Mohalla Tech shutting down its fantasy gaming platform Jeet11 in December 2022, which resulted in 100 employees losing their jobs.
Founded in 2015 by Singh, Ahsan and Ankush Sachdeva, ShareChat ventured into short video format after the ban on TikTok in 2020. In June last year, the company had raised $255 million from Google, Times Group, and Temasek. The firm was valued at around $5 billion then.
The short video unicorn has raised more than $1.43 billion from investors thus far.
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