Sharan Hegde, the influential financial content creator with over 2.7 million Instagram followers, has announced the layoff of 15 per cent of his workforce. This move marks the first major cost-cutting initiative for his company, “1% Club”, since its founding two years ago. In a LinkedIn post, Hegde explained that the decision was part of the company’s efforts to implement AI-driven cost savings.
“I just laid off 15% of my workforce and I received a lot of messages from my friends and media if I’m going bankrupt. As a finance influencer who built his career around financial education, the irony isn’t lost on me,” he shared.
Layoffs spark speculations
The layoffs have sparked speculation after an anonymous Reddit post claimed that around 40 employees were let go. The post, made by someone identifying as a former employee, stated that several senior roles, including VPs and AVPs, along with many content creators and graphic designers, were terminated. However, the authenticity of Reddit cannot be independently verified.
Hegde, who founded “1% Club” in 2022, clarified that the company’s expansion, including its 5,000-square-foot office in Mumbai, was funded entirely by profits. He also disclosed that ₹10 crore in investor funds remain in a fixed deposit, earning an 8.5 per cent interest yield.
Reflecting on the company’s rapid growth, Hegde explained, “I started this company from my bedroom with just 5 interns 2 years back, and fast forward today we have almost 200 employees.” He admitted that rapid expansion can sometimes lead to mistakes, particularly with hiring and managing expenses.
“We’ve been running this company bootstrapped without ever using investor capital because we are super strict with our financial planning and diligence,” Hegde added, emphasizing the company’s commitment to fiscal responsibility.
Originally from Mangaluru, Hegde worked at KPMG and PwC before shifting to content creation and moving to Mumbai.
