Layoffs 2024: Singapore-Based ShopBack Lays Off 24% of Its Workforce, Around 195 Employees Affected by Job Cuts

Singapore, March 19: ShopBack, a Singapore-based voucher company, has announced that it will cut 24% of group headcount. ShopBack said the layoffs will be implemented to make the company "more focused and self-sustainable". 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. Indian SaaS Startups To Create 100 New AI Unicorns, Country's Trillion Dollar Industry To Be Reshaped by GenAI: Report.

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".  Unilever Layoffs 2024: Global FMCG Company Announces To Cut 7,500 Jobs and Launch Program To Save Euro 800 Million Over Next Three Years.

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.

(The above story first appeared on LatestLY on Mar 19, 2024 04:10 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).