Singapore, August 31: Qoo10, formerly known as GMarket, is a Southeast Asian e-commerce company that has laid off nearly 80% of its employees amid challenging market conditions and restructuring. The Qoo10 layoffs affected people working in Singapore and 90 out of 110 affected were not offered any benefits due to the company's lack of funds.

The reports said that the Qoo10 layoffs affected almost all the people across many divisions, except the senior management team. The remaining team is expected to run the platform operations. The Singapore-based company, which operates in online marketplaces in Indonesia, mainland China, Malaysia and Hong Kong, came to a decision to reduce its workforce amid issues in South Korea. Goldman Sachs Layoffs: Investment Banking Firm To Lay Off Over 1,300 Employees as Part of Annual Review Process, Says Report.

The reports said that Qoo10 operations in the South Korea had defaulted on payments to local merchants and consumers last month. This resulted in financial issues, which caused the company to cut jobs at its Singapore headquarters. On August 13, the e-commerce company announced the first round of job cuts, which affected several departments. The employees who were laid off were mostly based in Singapore.

The reports said that only a small number of foreign staff were affected by the workforce reduction. Initially, the company did not intend to lay off 80% of its employees. Qoo10 apologised and expressed regret for making such a decision. Moreover, the online e-commerce company is anticipated to shut down its operations entirely and begin selling its assets. Shell Layoffs: Energy Company To Lay Off 20% of Its Employees To Reduce Operating Expenses.

The Qoo10 shutdown may be announced in the future; however, the company seems operational as of now. Despite the company not being linked to any labour unions, the employees affected by the Qoo10 layoffs had been offered support if required. The reports highlighted that Singapore's Ministry of Manpower confirmed that it is monitoring the situation at Qoo10. A report by Vulcan Post highlighted the layoffs at Qoo10, "the two-storey office is full of empty desks." 

(The above story first appeared on LatestLY on Aug 31, 2024 12:37 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).