ShopBack cuts 195 jobs as CEO admits taking the company in "too many directions" - Singapore News

Source: The Independent
Author: Jewel Stolarchuk

SINGAPORE: Online cashback portal ShopBack has announced a significant workforce reduction and revealed plans to lay off 195 employees, approximately 24% of its total headcount.

CEO Henry Chan made the decision during a town hall meeting on Tuesday (19 March), and affected employees received retrenchment notices shortly thereafter.

In a message on the ShopBack website, Mr Chan took accountability for the situation, attributing it to the pursuit of multiple directions and rapid team expansion.

He said, "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."

ShopBack, formerly known as Ecommerce Enablers, is a platform offering cashback incentives for purchases made through affiliated merchant programs. Additionally, it provides customers access to coupons and voucher codes to enhance their shopping experience.

Mr Chan announced a day off for the remaining staff to process the news and added that all departures would be kept to the same day on Tuesday "out of respect and to ease the transition for departing team members".

He said, "Today is a difficult day for all ShopBackers, especially for our Muslim ShopBackers who are also fasting during this period. We recognise the need for everyone to have the time and space to process this news."

Mr Chan highlighted the company's challenges despite concerted efforts to curtail costs since 2022. He explained:

"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.

It then became clear to me that a leaner and more agile team -- significantly different from our current organizational structure -- would be needed for us to succeed."

The severance package offered to retrenched employees includes pay for a minimum of two months' notice period and additional severance pay calculated based on years of service or local statutory guidelines.

Affected employees will also receive a bonus equivalent to a month's pay, prorated for tenure, and the option to encash unused leave.

ShopBack has also committed to covering repatriation costs for employees on employment visas, encompassing airfare and relocation expenses.

Additionally, the company will provide career transition support and extend healthcare coverage until the end of June to facilitate the transition for affected employees.

Mr Chan said, "Undoubtedly, this is one of the hardest decisions I've had to make in our company's history."