Caller-ID Crisis: Truecaller Trims Team as Tech, Ad Turbulence Takes Toll
Popular caller ID app Truecaller has announced a major round of layoffs. The Sweden-based company said it will cut approximately 15 percent of its total workforce, or 70 employees, in the second quarter of the current year. The decision was disclosed on Friday following the release of its business results for the first quarter of 2026.
Sharp decline in revenue
According to the company, Truecaller’s net sales in the first quarter of this year fell by 27 percent year-on-year to 362 million Swedish krona (approximately $39.34 million). The biggest setback came from the advertising segment, where revenue dropped by around 44 percent. In particular, the company’s income in its primary market, India, declined by a record 41 percent.
India and Middle East behind the downturn
Truecaller CEO Rishit Jhunjhunwala said the downturn was mainly driven by a ban on “real-money gaming” (online gambling or fantasy sports) apps in India and the absence of advertising during the IPL compared to last year. It is noted that the Indian government’s ban last August on transaction-based gaming apps such as Dream11 and MPL resulted in significant revenue losses for Truecaller. Additionally, ongoing war conditions in the Middle East have also led to a notable decline in the company’s earnings in that region.
Challenges from Google and domestic tech
The company has also attributed the drop in advertising revenue to changes in Google’s algorithms. At the same time, the launch of a domestic caller ID service, CNAP, by India’s telecom regulatory authority has created new challenges regarding the relevance of Truecaller. App downloads also fell by 5 percent last year.
Subscription growth offers hope
Despite the downturn, Truecaller has reported some positive developments. The company has reached a milestone of 50 crore (500 million) active users for the first time. Revenue from premium subscriptions has increased by 27 percent. The company noted that the addition of new features such as AI Assistant and Family Protection has contributed to the growth in paid users.
Truecaller’s position in the stock market also remains fragile, with its share price declining by around 79 percent over the past 12 months. However, following the latest quarterly results, there are indications of a slight recovery in the market.
DBTech/BMT/OR
