Truecaller Layoffs: Sweden-Based Company To Cut 15% of Workforce As Revenue Dips in India
Truecaller is cutting 70 jobs, or 15 per cent of its staff, following a 27 per cent drop in Q1 revenue. The company cited India’s ban on real-money gaming apps and Middle East instability as key factors. Despite the losses, Truecaller reached 500 million users and saw a 27 per cent rise in subscription sales.
Truecaller has announced it will reduce its global workforce by approximately 15 per cent, resulting in 70 redundancies, following a significant decline in revenue and profits during the first quarter of the year. The Sweden-based caller ID service reported that net sales dropped by 27 per cent to SEK 362 million (USD 39.34 million), driven largely by a sharp downturn in its primary market, India.
Despite the financial contraction, the company achieved a milestone of 500 million active users. However, the growth in user numbers was overshadowed by a 44% slump in advertising revenue, prompting the management to initiate cost-cutting measures to stabilise the business in a volatile economic environment. Cloudflare Layoffs: US-Based Cybersecurity Giant Cuts 1,100 Jobs Amid AI-Driven Restructuring; Check Severance Details.
Truecaller Revenue Decline in India and Middle East
The company’s performance in India, which accounts for the majority of its user base, saw net sales dip by 41% year on year. Truecaller CEO Rishit Jhunjhunwala attributed this slide to the Indian government's ban on real-money gaming apps, such as Dream 11 and MPL. These platforms were previously major advertisers on Truecaller, particularly during the Indian Premier League (IPL) cricket season.
External pressures have also mounted in other regions. Conflicts in the Middle East have significantly reduced revenues from that territory, while changes to algorithms by major programmatic advertising partners have further eroded the company's ad-based income. Additionally, the rise of government-backed caller identification services in India has created new competitive challenges.
Truecaller Job Cuts and Subscription Growth Strategy
The decision to cut 70 jobs is intended to streamline operations as the company pivots its business model. While advertising sales have struggled, Truecaller reported a 27% increase in subscription revenue. Paid services now represent 31% of the company’s total net sales, supported by the introduction of premium features such as an AI Assistant and "Family Protection" tools.
Internal restructuring will take place throughout the second quarter of 2026. The firm aims to reduce its reliance on third-party advertising by making its paid offerings more attractive to its half-billion users. Although the company’s stock has fallen by nearly 80 per cent over the last 12 months, shares showed signs of recovery following the transparency of the Q1 earnings report.
Impact of Real Money Gaming Ban on Tech Advertising
The decline in Truecaller’s earnings highlights the broader impact of India’s regulatory crackdown on the fantasy sports industry, which was once valued at USD 23 billion. The removal of these high-spending advertisers has left a void in the digital marketing ecosystem, affecting various global tech platforms that rely on the Indian market for growth. Tech Layoffs 2026: Over 101,550 Employees Hit by Job Cuts in 120 Companies So Far This Year; Cloudflare Joins List With 1,100 Reductions.
Furthermore, the Telecom Regulatory Authority of India (TRAI) has been promoting its own Calling Name Presentation (CNAP) service. This state-led solution provides caller identification at the network level, potentially reducing the necessity for third-party apps. Truecaller is now focusing on technological innovation and privacy-centric features to maintain its relevance against these institutional alternatives.
(The above story first appeared on LatestLY on May 09, 2026 03:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
