Singapore-based online marketplace giant Carousell has laid off 10 per cent of its headcount, equivalent to 110 roles, to cut costs amid the uncertain macroeconomic environment.
“I am deeply sorry for this outcome, and I take responsibility for the decisions that have led us here,” co-founder and CEO at Carousell, Quek Siu Rui, said in a statement.
“Parting with teammates, whom we are grateful to for joining us on this mission, is a very difficult decision. We will be sure to treat everyone impacted with compassion and to lend as much support as we can to them.”
In a note to staff explaining the reasons behind the decision, Rui said the company was “optimistic about the recovery” from last year’s Covid lockdowns and the pace of its impact versus its increased investment.
“The reality is that we were quick to grow our expenses and hire, but the return took longer than expected,” he said.
“While it is easy to blame market conditions, I also underestimated the impact of growing our team size too quickly –larger teams lead to lack of clarity in decision making and the additional coordination required to get things done.”
All impacted regular employees will have at least three months of compensation and one month of salary for every year of service on top of other support.
“We will learn from our mistakes, adjust and course correct quickly to make the biggest impact we can for our community. Moving forward, we will sharpen our priorities as a company, keep a watchful eye on costs and only invest in high-conviction initiatives that are properly set up for success,” said Rui.
This year, the e-commerce firm acquired Singapore fashion reseller Refash and Indonesian electronics re-commerce platform Laku6 as part of its effort to speed expansion in greater Southeast Asia.
