ShopBack Cuts a Quarter of Workforce

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By Published On: March 26, 20240 Comments

Shopback laid off 24 percent of its staff earlier this month in a move to “become more focused and self-sustainable as a company.”

ShopBack, the Singapore-based leading provider of cash-back rewards and a BNPL provider operating across Asia, Australia, and Germany, has laid off nearly a quarter of its workforce.

On March 19, CEO Henry Chan addressed his staff in a statement announcing that ShopBack had laid off 195 roles, representing 24 percent of the group in order to, “become more focused and self-sustainable as a company.”

Chan said that the company had exhausted all viable alternatives to reduce costs before making the decision.

In 2021 and early 2022, ShopBack scaled up its team from 550 to over 900 staff and has since sought to lower costs incurred as the market changed. ShopBack attempted to reduce costs by implementing pay freezes and removing performance bonuses for leaders, and removing over 100 full-time positions by reducing back-fills and filling only strictly critical roles.

Chan took personal responsibility for the job cuts, writing, “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.

While these course corrections are painful, they are crucial and will set us up for success in the years to come. Because of this, we will be able to grow sustainably moving forward.”

The layoff comes as ShopBack exits the BNPL market in Singapore and Malaysia. 

“Over the past few months, we narrowed our focus, identified critical and durable problem spaces to excel in over the longer term, and established a more effective operating rhythm to keep us on track,” wrote Chan. “As a company, we now have a clearer strategy in place for 2024 and beyond, and a healthy cash reserve to get us there.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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