Truecaller to cut 70 jobs after Q1 revenue slides 27% to 362 million SEK for real workflows

Truecaller will cut about 70 positions, roughly 15% of its workforce, in the second quarter after reporting weak Q1 2026 results, citing a need to adjust its cost base as top‑line performance deteriorated. The move follows a steep drop in advertising revenue and signals a strategic push to align expenses with slower growth in the company’s largest markets. In Q1 2026 the company reported net sales of 362 million SEK (about $39.34 million), a 27% decline from the year‑ago quarter. Overall ad revenue fell 44% year‑on‑year, and India — Truecaller’s biggest market — saw net sales down 41% over the same period, weighing heavily on group performance.

Management linked the sharp year‑on‑year comparison to several contextual factors. CEO Rishit Jhunjhunwala said Q1 and Q2 of the prior year benefited from a large advertising contribution tied to India’s real‑money gaming sector around the IPL season, and added that a weaker situation in the Middle East also reduced revenue from that region. The company also pointed to algorithm changes at a programmatic advertising partner; an analyst earlier this year identified that partner as Google.

Regulatory shifts have removed a previously important advertising category: India banned real‑money gaming apps such as Dream11 and MPL last August, a sector industry bodies had earlier estimated at roughly $23 billion. Separately, Truecaller faces competitive pressure from telecom‑led solutions such as Calling Name Presentation (CNAP), and app downloads fell about 5% year‑on‑year last year, reducing the pipeline for ad monetization.

Truecaller reported some positive trends despite the downturn. The service surpassed 500 million active users and subscription revenue grew 27%, with subscriptions now accounting for 31% of net sales. The company has been expanding paid features — including an AI Assistant and Family Protection — to diversify revenue beyond advertising and bolster recurring income. The company said the headcount reductions will occur in the second quarter as part of the cost‑base adjustment. Truecaller’s stock has fallen more than 26% year‑to‑date and over 79% in the past 12 months, though it registered some recovery after the Q1 disclosure.