Truecaller slashes 70 jobs amid declining ad sales

Truecaller, the Swedish caller ID service, has announced a reduction of 70 jobs, which represents approximately 15% of its total workforce. This decision comes in light of a disappointing Q1 2026 financial report that highlighted a significant decline in both revenue and profits. The company attributed its struggles to a combination of factors, including the impact of real-money gaming regulations in India, alterations in advertising partner algorithms, and ongoing conflicts in the Middle East. Recent reports indicate that Truecaller is facing stiff competition from telecom-led identification solutions like Calling Name Presentation (CNAP) in India. Additionally, there was a 5% year-on-year drop in app downloads last year. Truecaller’s latest financial results reveal a staggering 27% decrease in net sales, totaling 362 million SEK (approximately $39.34 million). Particularly alarming is the 41% year-on-year drop in net sales from its largest market, India, alongside a 44% decline in advertising revenue. CEO Rishit Jhunjhunwala noted during the earnings call that the year-over-year figures appear particularly weak due to a previous surge in revenue from the real-money gaming sector during India's IPL season, which has since faced regulatory restrictions. In August, India implemented a ban on real-money gaming applications like Dream 11 and MPL, which had generated substantial advertising revenue. The real-money gaming industry was estimated to be worth around $23 billion in India prior to this crackdown. Furthermore, Truecaller reported that changes made by a programmatic advertising partner, identified as Google by analysts, also contributed to the downturn in ad revenue. Despite these challenges, there were some positive developments for Truecaller. The company surpassed 500 million active users and saw a 27% increase in subscription revenue, which now accounts for 31% of its total sales. Truecaller has been actively enhancing its paid services with new features like AI Assistant and Family Protection to attract more subscribers. However, the company's stock has taken a hit, dropping over 26% this year and more than 79% over the past twelve months, although there has been a slight recovery following the Q1 results.