Carousell cuts 7% of total headcount in 'strategic' review

SINGAPORE: E-commerce platform Carousell announced on Friday (Dec 6) that it is cutting 76 roles across its regional offices, or 7 per cent of the group's total headcount.

"This reorganisation was done proactively to adjust our group strategic choices to match the market reality in some business units, and to reallocate resources to areas that are showing promise," said a Carousell spokesperson.

These adjustments aim to ensure the company's "long-term sustainability and operational efficiency", the spokesperson added.

In response to CNA's queries, Carousell said that about 60 per cent of the affected roles are based in Singapore, with the remaining spread across its other offices. 

Headquartered in Singapore, Carousell has offices across eight locations in Southeast Asia, India, Hong Kong and Taiwan. 

The affected roles were from both business and technology departments, the company told CNA.

Carousell group chief executive Quek Siu Rui informed all employees of the layoffs in a town hall on Friday morning, the spokesperson said. The affected workers were told individually by their department heads and a human resources representative.

COMPENSATION & SUPPORT

The affected employees will be offered a month's salary for every year of service, and the company will ensure that each will get "at least three months of compensation", the Carousell spokesperson said. 

They will be allowed to encash their paid time-off balances and flexible benefits, and those who own company shares under an employee stock ownership plan will have their vesting period accelerated so they can cash out the shares.

The company will, where possible, also extend medical and insurance coverage for the affected employees and their dependents until June 2025.

It will also offer impacted staff members "career counselling and employment assistance" with its talent acquisition team, as well as counselling services for emotional and mental support.

Other forms of support include full subsidy of union membership fees for the next year, and allowing affected workers to keep their office laptops.

"We remain committed to working closely with the Creative Media and Publishing Union (CMPU) to ensure that all impacted employees receive fair compensation packages and are provided with the necessary support during their transition period," said the Carousell spokesperson.

The support includes "job matching services and career advisory resources to help them secure their next job opportunity".

Carousell, which is unionised under CMPU, has informed the union and the National Trades Union Congress (NTUC) of the retrenchment exercise, said CMPU in a statement.

The company has "assured that it has explored all alternative options, including redeployment to other suitable positions", added CMPU.

The union has also worked with Carousell to "ensure that affected members and workers are offered fair compensation packages, in accordance with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment; and provided with the necessary support while they transit to their next job".

The advisory states that employees with two or more years of service are eligible for retrenchment benefits, while those with less than two years of service "could be granted an ex-gratia payment".

NTUC and CMPU will also offer job matching and career advisory resources by the Employment and Employability Institute, as well as skills upgrading opportunities by NTUC Learning Hub.

PAST LAYOFFS, OPENING OF REGIONAL HQ

Carousell had previously carried out global cost-cutting layoffs after the pandemic, letting go of 10 per cent of its total headcount, or about 110 people, in December 2022. 

Its CEO, Mr Quek, said then that it was a "very difficult decision". "I am deeply sorry for this outcome, and I take responsibility for the decisions that have led us here," he added. 

At the opening of Carousell's new regional headquarters in Singapore in September 2023, he acknowledged the layoff, saying that it was a "very deliberate decision to focus on a few critical priorities and build an enduring company".

In April 2024, Indonesian electronics recommerce company Laku6, which was acquired by Carousell in July 2022, also laid off 17 per cent of its headcount.