‘I just laid off 15% of my workforce...’: Finfluencer Sharan Hegde cites AI in cutbacks at Nikhil Kamath-backed 1% Club

Popular finance influencer Sharan Hegde, co-founder of The 1% Club, announced in a LinkedIn post that he laid off 15% of his workforce, sparking questions about the company’s stability.

“I just laid off 15% of my workforce and received a lot of messages asking if I’m going bankrupt,” Hegde shared, addressing the rumors while offering an update on his strategy. Despite rapid growth, he attributed the layoffs to expansion errors and redundant hiring, calling it “our first cost-cutting exercise since inception.”

Hegde stated that the company, launched from his bedroom two years ago, now generates $8 million in annualized revenue with a 35-40% EBITDA. He clarified that its upscale Mumbai office was funded by profits, with a Rs 10 crore investment from Nikhil Kamath’s Gruhas secured in an FD at 8.5%.

Co-founder Raghav Gupta explained that workforce reductions, mainly in content, research, and marketing, were prompted by AI-driven efficiencies. “Tools like Perplexity AI have made content creation faster, reducing manual work,” he said, noting that automation has cut redundancies and boosted operational efficiency.

Hegde acknowledged the layoffs' impact on employees, assuring that severance and job search support were provided. “While I’m focused on growth, I understand the psychological impact,” he said, highlighting the company’s responsible approach.

Backed by Kamath’s Gruhas, The 1% Club has grown rapidly, boasting 85,000 active users and over 4 lakh paid customers. Describing the firm as a “socio-finance community,” Hegde and Gupta offer financial education, tools, and events.

AI’s role in operations has been substantial, with Gupta noting that it enhances marketing, customer support, and data analysis. “We’re in an age of abundance,” he said, citing OpenAI CEO Sam Altman, “With AI, we can create more and solve complex problems.”