ShareChat Parent Mohalla Tech Hands Pink Slip To 600 Employees

Just six months after raising $255 million in funding, ShareChat's parent company, Mohalla Tech announced the layoff of nearly 600 employees.

By doing so, it joined a growing list of heavily funded startups that are reducing expenses in anticipation of the much-discussed funding winters getting worse.

According to people familiar with the situation, the company handed pink slips to at least 600 of its approximately 2100 employees in senior management and mid-to-junior management in the last few days. 

However, according to the company, it has let go of close to 500 workers, or around 20 per cent of its workforce.

As per the persons who want to remain anonymous, the company sent emails to all affected employees informing them of the layoffs and posted a message on Slack to all other employees who would not be impacted by the action. The sources further stated that terminated employees no longer had access.

The layoffs are the result of too much hiring following several investment rounds, according to one of those cited above.