Truecaller Cuts 70 Jobs As India Ad Slowdown & Algorithm Changes Hit Revenue

Truecaller is tightening its belt after a difficult start to 2026.

The Sweden-based caller ID and spam-blocking platform announced plans to cut around 70 jobs, roughly 15% of its workforce, after reporting steep declines in revenue and profit during Q1 2026.

The company blamed weaker advertising demand, changes to partner algorithms, and a shrinking real-money gaming market in India for the slowdown.

Despite crossing 500 million active users globally, the company’s biggest market, India, dragged down overall performance as advertising revenues weakened sharply.
 

TL;DR

 

• Truecaller will cut 70 jobs, around 15% of its workforce, in Q2 2026
• Q1 2026 net sales fell 27% year-over-year to 362 million SEK
• India revenue dropped 41%, while ad revenue declined 44%
• The company blamed India’s gaming ad slowdown, Google algorithm changes, and Middle East instability
• Subscription revenue rose 27% and now contributes 31% of total net sales

 

Truecaller’s India Ad Business Takes A Major Hit

Truecaller’s quarterly earnings reflected how dependent the company had become on advertising revenue from India’s real-money gaming sector. During the company’s earnings call, CEO Rishit Jhunjhunwala said the comparison looked especially weak because last year’s first half included heavy spending from fantasy gaming companies during the IPL season.

“The year-on-year comparison looks especially weak given that Q1 and Q2 last year included a large contribution coming from the real money gaming sector in India in connection with the IPL season that takes place around this time. The situation in the Middle East also reduced our revenues from that region,” said Jhunjhunwala.

India banned several real-money gaming apps in 2025, including platforms such as Dream11 and MPL that enabled users to wager money on fantasy sports contests. Industry estimates had previously valued the sector at around $23 billion, making it a major source of digital advertising spending across platforms like Truecaller.

The company also pointed toward changes made by one of its programmatic advertising partners, which analysts earlier identified as Google. Those algorithm adjustments further impacted monetization and ad delivery performance during the quarter.

At the same time, instability in the Middle East also affected revenue generation from the region, adding more pressure to the company’s advertising business.
 

 

Subscription Growth Gives Truecaller Some Relief

While the ad business struggled, Truecaller’s subscription segment delivered one of the few bright spots in the quarter. Subscription revenue climbed 27% year-over-year and now represents 31% of the company’s total net sales.

The company has been expanding its premium offerings with features such as AI Assistant and Family Protection in an effort to attract paying users and reduce reliance on advertising revenue.

Truecaller also crossed 500 million active users globally, marking a significant milestone for the company even as growth challenges continue to emerge.

However, pressure is building from multiple directions. Telecom-led caller identification services in India, including Calling Name Presentation (CNAP), are beginning to create fresh competition for the platform. Earlier reports also showed that Truecaller’s downloads declined 5% year-over-year in 2025, signaling slowing momentum in one of its most important markets.
 

 

Truecaller Shares Remain Under Pressure Despite Recovery

Investor sentiment around the company has also weakened sharply over the past year. Truecaller’s stock has fallen more than 79% over the last 12 months and remains down over 26% this year despite a slight recovery following the Q1 earnings announcement.

The layoffs suggest the company is now shifting focus toward cost control while attempting to stabilize revenue streams through subscriptions and newer AI-powered services.