- Kyle Chua
Singaporean Online Marketplace Carousell Cuts 110 Jobs To Control Costs
Carousell, the Singapore-based online marketplace for buying and selling secondhand goods, is downsizing.
The home-grown company on Thursday, 1 December cut 110 jobs – about 10% of the total headcount – to control costs amid dimmed growth prospects, as The Straits Times reports. Not all business units were affected by the cuts, according to CEO Quek Siu Rui in an email sent to all employees.
"I am deeply sorry for this outcome, and I take responsibility for the decisions that have led us here," he said.
The email didn't specify how many employees from the Singapore office were cut.
Those affected by the cuts are invited for a meeting with a team leader and a human resources business partner for the next steps. They'll reportedly receive three months' worth of salary, receive cash in lieu of their remaining paid time off and have their medical benefits extended until 30 June 2023. Meanwhile, tenured employees and those who hold stock options will have the vesting for 25% of their stocks accelerated.
Mr Quek said his company created more teams and hired more employees in a bid to reignite growth in its core business after lockdown measures eased. His plans, however, didn't pan out, with high inflation, geopolitical risks and supply chain issues factoring in the company's less-than-optimistic growth expectations.
"The reality is that we were quick to grow our expenses and hire, but the returns took longer than expected."
Mr Quek noted that he spent the last few months finding ways to cut as much cost as possible without retrenching employees. For instance, he moved the company to an office with significantly lower rent and took voluntary pay cuts. But these efforts were "far from enough" to course correct the company.
"As we do not know when market conditions will improve, it is only prudent that we get to profitability as a group as quickly as possible, to be masters of our destiny and build an enduring company," he said.
Carousell isn't the only company forced to cut jobs amid uncertainty in the global economy. Sea's Shoppe and Meta also downsized recently to control costs.
Carousell posted US$49.5 million in revenue in 2021, marking a 21.8% year-on-year growth – a far cry from 2020 figures, which saw the online classifieds giant triple its revenue.
Carousell cut 110 jobs – about 10% of the total headcount – to control costs amid dimmed growth prospects.
"I am deeply sorry for this outcome, and I take responsibility for the decisions that have led us here," said CEO Quek Siu Rui.
He noted that he spent the last few months finding ways to cut as much costs as possible without retrenching employees, but his efforts were "far from enough".