Truecaller cuts 70 jobs amid declining ad sales

Sweden-based caller ID company Truecaller said it will cut 70 jobs, or roughly 15% of its workforce, in the second quarter, as the company reported its first-quarter 2026 results with revenue and profits down. Truecaller blamed real money gaming in India, changes in advertising partners’ algorithms, and conflict in the Middle East.

As TechCrunch reported last month, the company is already facing challenges from telecom-led solutions in India, such as its Call Name Display Appointment (CNAP) service, and a 5% year-on-year decline in downloads in the past year.

In Q1 2026 results, Truecaller’s net sales fell 27% to 362 million Swedish krona ($39.34 million). In its largest market, India, net sales fell 41% year-on-year. In addition, advertising revenues decreased by 44%.

“The year-on-year comparison looks particularly poor considering that the first and second quarters of last year included a significant contribution coming from the real money gaming segment in India in relation to the IPL season being held around this time. The situation in the Middle East has also led to a decline in our revenues from that region,” Truecaller CEO Rishit Jhunjhunwala said during the earnings call.

Last August, India banned real money gaming apps like Dream 11 and MPL that allowed users to use money to play fantasy sports. Industry bodies have estimated that the real money gaming industry is worth $23 billion in India. Because of this closure, the platforms on which real money apps are advertised are deprived of that revenue.

Truecaller also said the revenue decline in its advertising business was also due to a programmatic partner, identified as Google by an analyst earlier this year, changing its algorithms.

There were only a few positives for the company this quarter. Firstly, it crossed the 500 million active users mark. Additionally, subscription revenue increased 27%, representing 31% of net sales. The company is adding features like AI Assistant and family protection to make its paid offerings more attractive.

Truecaller stock is down more than 26% this year and more than 79% in the past 12 months. However, after the first quarter results, it saw some recovery.