Content creator and financial influencer Sharan Hegde recently announced a 15 per cent reduction in his workforce at 1% Club, marking the company’s first major cost-cutting effort since its inception just over two years ago. Hegde shared on LinkedIn that the decision aligns with the company’s current focus on achieving cost efficiencies through artificial intelligence integration.
"After laying off 15% of my workforce, I received messages from friends and media questioning if I was facing bankruptcy," Hegde remarked. A well-known presence on social media, with over 2.7 million followers on Instagram, Hegde is recognised for his financial guidance and educational content. He founded 1% Club in 2022 to help individuals achieve financial independence, and his company quickly grew, employing nearly 200 people.
Hegde’s decision to streamline operations comes amid claims from a Reddit user, allegedly a former employee, suggesting that around 40 employees were dismissed. This reportedly included high-ranking roles such as vice presidents and assistant vice presidents, as well as nearly all content creators, video editors, and graphic designers. The user’s statements, however, remain unverified.
Addressing questions about the company’s financial status, Hegde assured that 1% Club’s rapid growth—expanding from a team of five interns to nearly 200 employees in two years—was funded by profits alone. He noted that ₹10 crore of investor money remains untouched in a fixed deposit account, yielding 8.5 per cent interest, while their recent office expansion was also funded through the company’s earnings.
Reflecting on the challenges of fast growth, Hegde acknowledged, "When you grow at such lightning speed, some missteps in hiring and spending are inevitable." Alongside his co-founder Raghav Gupta, he emphasized their commitment to rigorous financial planning, operating the company without relying on investor capital.
Originally from Mangaluru and an engineering graduate from Bengaluru, Hegde began his career in financial consulting at KPMG and PwC before moving to Mumbai and transitioning into content creation. His journey from a bedroom-based startup with five interns to a nationwide business highlights both the rewards and challenges of rapid business expansion in the digital age.
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