Truecaller, the renowned Sweden-based caller ID service, has revealed plans to reduce its workforce by 70 positions, which equates to approximately 15% of its total employees. This decision comes in light of the company's Q1 2026 financial performance, which showed a notable decline in both revenue and profits.
The company attributes this downturn to several factors, including the impact of real-money gaming restrictions in India, modifications in advertising partner algorithms, and geopolitical tensions affecting the Middle East. As reported, Truecaller witnessed a significant 27% drop in net sales, totaling 362 million SEK (around $39.34 million). In its primary market, India, the company experienced a staggering 41% year-on-year decrease in net sales, alongside a 44% reduction in advertising revenue.
CEO Rishit Jhunjhunwala highlighted that the previous year's Q1 and Q2 figures benefited from substantial contributions from the real-money gaming sector, particularly during the IPL season. The recent ban on such gaming apps in India has notably impacted advertising revenues for platforms that previously promoted these services.
Additionally, Truecaller faced challenges due to changes in algorithms from a programmatic advertising partner, which has also been identified as Google by industry analysts. Despite these challenges, there were some positive developments for the company. Truecaller surpassed 500 million active users and saw a 27% increase in subscription revenue, which now constitutes 31% of its total sales. The introduction of innovative features like the AI Assistant and Family Protection has been aimed at enhancing the appeal of its paid offerings.
While Truecaller's stock has faced a decline of over 26% this year and a staggering 79% in the past 12 months, a slight recovery has been noted following the recent earnings report.