Swedish caller identification platform Truecaller has announced plans to cut 70 jobs, representing approximately 15% of its total workforce, as the company grapples with a significant downturn in financial performance. The layoffs, set to occur during the second quarter, follow a challenging Q1 2026 report that saw net sales plummet by 27% to 362 million SEK, or roughly $39.34 million. The company’s primary market, India, was hit particularly hard, experiencing a 41% year-over-year decline in net sales.

Leadership at Truecaller attributed the revenue slide to a confluence of factors, most notably a drastic 44% drop in advertising income. This decline was partially caused by shifting algorithms from key programmatic advertising partners and the regulatory impact of India’s crackdown on real-money gaming apps. The gaming sector previously provided a substantial boost to advertising revenue, particularly during seasonal sporting events like the IPL. Furthermore, ongoing geopolitical instability in the Middle East has continued to exert downward pressure on regional earnings.

Despite the broader financial difficulties, the company highlighted a few areas of growth, most notably in its subscription business, which saw a 27% increase and now accounts for nearly a third of total net sales. Truecaller continues to focus on diversifying its revenue streams by integrating new features such as AI-driven assistance and family protection tools. Additionally, the platform recently surpassed the milestone of 500 million active users.

Looking forward, Truecaller faces increasing pressure from emerging telecom-led identification services and a recent trend of stagnant download growth. While the company’s stock has faced a steep decline of over 79% over the past year, recent post-earnings activity has shown signs of a potential market stabilization as the firm pivots toward a more subscription-heavy model.