Layoffs 2024: Singapore-Based ShopBack Lays Off 24% of Its Workforce, Around 195 Employees Affected by Job Cuts
The Singapore-based ecommerce and online coupon company said that in 2021 and early 2022, it scaled the team from 550 to 900. ShopBack said that during that time, economy favoured the expansion over sustainability.
ShopBack Founder and CEO Henry Chan announced the layoffs through an online notice, addressing all the employees as ShopBackers. It said, “To all ShopBackers… Today, we will be reducing the size of our team by 195 roles, representing 24% of our Group headcount, to become more focused and self-sustainable as a company.” ShopBack CEO said company would be issuing notifications to the “ShopBackers” who would leave the company.
Henry Chan also said, “market sentiments shifted and aggressive growth became an unsustainable long-term strategy” from Q2 2022. Due to this, ShopBack company focused on cost efficiency. He further said that the company tried every alternative to reduce costs, such as cutting back salary increments, welfare budgets, performance bonuses, implementing pay freezes and introducing compensation cuts. In the official ShopBack notice, the CEO also said that the company tried to remove 100 full-time positions by reducing back-fills and preferred only critical roles.
The ShopBack CEO Henry Chan also said that the company introduced higher standards for efficiency and cost-cutting. However, it did not lead to a reduction in costs in 2022 and challenged sustainable growth. The CEO said, “Ultimately, I decided on a more substantial reduction to minimize the chances of us ever having to do this again.” He said the layoffs at ShopBack were debated between leaders and added that “no decision was made lightly”.
ShopBack also announced the provision of severance payments to the employees to support their transition period along with other benefits such as bonuses or commissions, leave encashment, learning and development and healthcare. The company said it would provide career transition support and immigration support for visa holders.
