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ShopBack lays off 24% of employees, CEO apologises for expanding team too quickly

ShopBack retrenches 24% of its employees

On Tuesday (19 March), cashback reward platform ShopBack announced that it will lay off 24% of its employees.

The company’s Chief Executive Officer (CEO), Henry Chan, explained that the company had made the decision to be more focused and sustainable.

He also apologised for expanding ShopBack’s team too quickly.

Company will cut 195 roles to ensure sustainability

In a press statement, Mr Chan shared that a total of 195 roles will be cut from ShopBack’s team.

As of 12pm on Tuesday, affected employees would have received a message informing them of meeting details with their leader and HR.

Back in 2021 and 2022, the team ballooned from 550 to more than 990 employees.

This was a time when “the economy favoured expansion over sustainability”.

In recent months, however, ShopBack saw the need to focus on ensuring sustainable growth.

The company thus reviewed all existing roles in the team, assessing them based on their alignment with ShopBack’s needs in the future.

 

Additionally, Mr Chan highlighted that Tuesday would be the retrenched employees’ final in-office day.

Affected ShopBackers will receive enhanced severance packages

To support the affected ShopBack staff, the company will be offering them an enhanced severance package.

Among the slew of support measures, employees will receive salaries for at least two months of their notice period.

On top of this, they will receive a month of severance payment for every full year of their service, as well as a bonus equivalent to one month’s pay.

Additionally, ShopBack will support them in their career switch.

For example, the employees will be offered Curriculum Vitae (CV) reviews, professional coaching, and a Career Transition Support Allowance.

CEO takes full responsibility for expanding team too quickly

In his statement, Mr Chan admitted that he pursued an excessive number of directions when leading ShopBack.

This included expanding the team too quickly.

“I take full responsibility for the decisions that have led to this situation,” he wrote.

He also urged the affected ShopBackers not to put the blame on their leaders, as most of the retrenchment decisions were made by him.

More details about the company’s future plans will be shared in due course.

Also read: Lazada Lays Off S’pore Staff Suddenly, Ex-Employees Claim HR Booked Meeting Rooms To Break News

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Featured image by TheSmartLocal.

Amber Ang

Amber is an unapologetic fangirl and a huge Swiftie.

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