SHARE CHAT LAYS OFF 101 EMPLOYEES FROM ITS WORKFORCE
The laid-off employees will have the choice of taking a ‘garden leave’ of two months or half the salary for four months.
Share Chat lay off 101 employees on Wednesday, the May 20, 2020 or a few fourth of the workforce, because the regional social media firm expects the advertising market to be unpredictable this year.
The laid-off employees will have the choice of taking a ‘garden leave’ of two months or half the salary for four months. Garden leave may be a practice when a terminated employee stays far away from work during the notice period, while still remaining on the payroll. Aside from this, laid-off employees will get a 1-month optional for each year that they need worked for the corporate.
The Twitter-backed firm sent an email to employees on early morning Wednesday, May 20, 2020, informing them about the varied cost-cutting measures. The five-year-old company had started monetizing the platform through advertising only in October last year. However, the Covid-19 pandemic led economic slowdown has severely hurt the advertising market.
“We need to specialize in our core product and feed recommendation driven growth levers while scaling back on the others. We’d like to travel back to our fundamentals in terms of only picking bets that move the needle for growth,” said Ankush Sachdeva, Co-founder & CEO, Share Chat within the email.
“We believe the Ad Market would remain unpredictable this year.
We are streamlining our revenue teams to those new expectations...” Sachdeva added that while the corporate was fortunate to boost capital last year, it's compelled to require a relook at the business.
“Share Chat is made through the relentless diligence and sincerity that our people bring back works a day. This is often a really tough involve us. I hope you understand that we had to try to it for the organization to sustain and see it through to the opposite side of this pandemic,” said Sachdeva within the email.
Bangalore-based Share Chat, which competes with Facebook and TikTok, raised $100 million from micro blogging site Twitter and a few other investors in August last year (2019). It also counts Trust Bridge Partners, Shunwei Capital, Light speed Venture Partners, and SAIF Capital among its investors. It has about 60 million monthly active users in India.
Share Chat spokesperson confirmed the event and said that the worldwide pandemic alongside various local market uncertainties had an impression on its business plans, which has pushed it towards tough decisions including a revised leaner structure.
Sachdeva said the impacted employees will still be covered by Share Chat’s insurance policy until the top of the year, and added that the corporate will extend the timeline for the stocks employees own till the top of the year. This is able to mean the choices that vest by the top of the year will still be retained by the workers.
He said the corporate will assist all the impacted employees with finding relevant openings available within the market and connect them across other organizations, recruiters, and agencies. It’s also engaged knowledgeable resume builder to assist the workers build their resume and LinkedIn profile for free of charge.
“While I understand that no amount of advantages can assuage what you'll go through; we are committed to handling this as respectfully as we will,” Sachdeva said. “Lastly, I would like to thank all of you who are going to be leaving us for your commitment to the company’s vision during these growing years.
Please accept my apologies as we've not been ready to make sure that everyone of you continued on this journey.”