- ShopBack lays off 24% of its workforce to streamline operations and achieve sustainable growth.
- The company offers support measures, including severance pay and career transition assistance.
- ShopBack aims to minimize future layoffs and position itself for long-term success.
Difficult decision amid financial challenges
ShopBack, a Temasek-backed cashback and rewards platform, has announced a significant reduction in its workforce, cutting 195 employees, or 24% of its staff.
The decision was made to streamline the company’s operations and focus on achieving sustainable growth. Co-founder and CEO Henry Chan broke the news during a town hall meeting on March 19, with affected employees being notified within an hour of the event’s conclusion.
Support measures for departing employees
ShopBack has implemented various support measures for the departing employees, including a minimum of two months’ salary following their notice period, an additional month’s salary as severance pay for every full year of service, and a pro-rated bonus equivalent to one month’s salary.
The company will also extend medical insurance coverage, provide access to mental healthcare support until June 30, 2024, and offer career transition assistance. Visa holders will receive repatriation support, covering airfare and moving expenses.
Layoffs now, stability later
Chan emphasized that the decision to reduce the workforce was one of the most challenging in the company’s history.
The move comes after ShopBack reported a 20% decline in revenue to US$87.7 million for the financial year ended March 2023, along with widening losses before tax. The company also recently announced the discontinuation of its “buy now, pay later” service following a periodic review of its business units.
By restructuring its organization and focusing on a leaner structure, ShopBack aims to minimize the chances of future layoffs and position itself for sustainable growth in the competitive cashback and rewards market.
To read the original article: https://www.techinasia.com/shopback-cuts-24-staff-push-sustainability
