Sharan Hegde, finance influencer and co-founder of One Percent Club, recently announced a layoff affecting 15% of the company’s workforce.
In a LinkedIn post, Hegde addressed rumors, saying, “I just laid off 15% of my workforce and received a lot of messages asking if I’m going bankrupt.” He clarified that the layoffs stemmed from expansion missteps and redundant hiring, marking the company’s first cost-cutting measure since its inception.
Backed by investor Nikhil Kamath, One Percent Club has grown quickly, gaining popularity for its financial literacy and wealth-building resources. The layoffs are part of Hegde’s strategy to shift focus toward artificial intelligence (AI) for increased efficiency and enhanced product offerings.
Founded just two years ago in Hegde’s bedroom, One Percent Club now serves 85,000 active users and over 400,000 paid customers, generating $8 million in annual revenue with an EBITDA of 35-40%. Their high-end Mumbai office was funded through profits, and a Rs 10 crore investment from Nikhil Kamath’s Gruhas remains in an FD, providing steady interest income.
Co-founder Raghav Gupta shared that the layoffs primarily impacted roles in content, research, and marketing, due to efficiency gains from AI tools like Perplexity AI, which streamline content creation and reduce the need for manual labor.
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Hegde acknowledged the impact on affected employees, offering severance pay and job placement support. “While my focus is on growth, I understand the emotional impact,” he said, underscoring the company’s thoughtful approach.
As the tech industry increasingly incorporates AI, Hegde believes this proactive shift will allow One Percent Club to enhance user experiences by automating tasks and focusing on data-driven strategies.
The layoffs are part of a broader trend as tech firms realign to remain competitive in a fast-evolving digital landscape.
