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ShopBack lays off 24 per cent of employee headcount, cuts 195 roles
The company cited its strategy of becoming more "focused and self-sustainable" as reasons for the retrenchments.
SINGAPORE—Shopping rewards platform ShopBack has laid off 24 per cent of its total employee headcount, comprising 195 roles, to "become more focused and self-sustainable as a company".
The group's chief executive officer and co-founder, Henry Chan, made the announcement in a message that was posted on the company's website. Affected employees were issued notifications within an hour of the company's town hall on Tuesday (19 March).
In his message, Chan explained how the company decided to pursue a "leaner and more agile team" to achieve sustainable growth. Following an expansionary period that saw its size go from 550 to over 900 employees in 2021 and early 2022, the company turned its focus toward cost efficiency in the second quarter of 2022 when market sentiments shifted and "aggressive growth became an unsustainable long-term strategy".
"Whenever the topic of layoffs arose, I have always maintained that it would be our absolute last resort. Today, with a heavy heart, I bear sad and difficult news," said Chan in the opening of his message.
Also read: Layoffs: Everything you need to know about retrenchments, including in Singapore
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Chan said that the company had "explored and exhausted all viable alternatives to reduce costs" before deciding to lay off employees. This included reducing salary increments and bonuses as well as introducing pay freezes and compensation cuts.
"I made the mistake of pursuing too many directions as a company and expanding our team too rapidly. I take full responsibility for the decisions that have led to this situation," said Chan in his message.
Chan also urged the laid-off employees not to place any blame on their direct leaders, as the final decision to part ways was made by him.
"I want you to know that no decision was made lightly. Every proposed reduction was deliberated, and many times hotly debated, between your leaders and I.
"Ultimately, I decided on a more substantial reduction to minimise the chances of us ever having to do this again," said Chan.
I made the mistake of pursuing too many directions as a company and expanding our team too rapidly. I take full responsibility for the decisions that have led to this situation.Henry Chan, CEO, ShopBack
Retrenchment packages
Laid-off employees will receive at least two months' pay of their notice period in addition to one month of severance pay for every full year of their service in the company, or based on local statutory guidelines, whichever is higher.
The affected employees will also receive a bonus equivalent to one month's pay which will be pro-rated for those who have yet to complete a full year of employment. Those in sales roles will receive their eligible commissions payment tabulated till the end of the first quarter of 2024.
The company will also provide career transition support in the form of either CV reviews, mock interviews, access to a professional coach or a career transition support allowance.
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