A message from Henry

To all ShopBackers

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Whenever the topic of layoffs arose, I have always maintained that it would be our absolute last resort. Today, with a heavy heart, I bear sad and difficult news.

Today, we will be reducing the size of our team by 195 roles, representing 24% of our Group headcount, to become more focused and self-sustainable as a company. We will be issuing notifications to ShopBackers who will be leaving us within an hour of the end of Town Hall. In some markets, this process will take longer due to local laws and practices.

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

To the ShopBackers who will be leaving us, I am truly sorry and I acknowledge the difficulties it will bring to you. We will do our best to support you through this transition with care and compassion.

I will share context about how I arrived at this decision, our plans to support the team members affected, and the steps we are taking today.

How we got here

In 2021 and early 2022, during a period when the economy favored expansion over sustainability, we scaled up our team from 550 to over 900 ShopBackers.

From Q2 2022, when market sentiments shifted and aggressive growth became an unsustainable long-term strategy, our focus turned to cost efficiency. As a team, we explored and exhausted all viable alternatives to reduce costs, including :

1. Cutting back significantly on salary increments, performance bonuses, and welfare budgets;
2. Implementing pay freezes and removing performance bonuses for leaders, and for senior leaders, introducing compensation cuts;
3. Removing over 100 full-time positions we were hiring for, by reducing back-fills and filling only strictly critical roles; and
4. Introducing higher standards for efficiency and cost-effectiveness across the organization.

Despite our efforts to reduce costs since 2022, sustainable growth remains a challenge.

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. As a company, we now have a clearer strategy in place for 2024 and beyond, and a healthy cash reserve to get us there.

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

Our approach to reductions

Our approach to headcount reductions started with redesigning from scratch a revised, lean organizational structure that will enable us to deliver on our strategy. We then reviewed every existing role in the organization, starting from the most senior levels, to determine the extent to which they align to our future needs.

Ultimately, I decided on a more substantial reduction to minimize the chances of us ever having to do this again.

Many of you will be feeling distressed, fearful, or angry right now – and you have every right to feel this way. I want you to know that no decision was made lightly. Every proposed reduction was deliberated, and many times hotly debated, between your leaders and I. In many cases, your leaders advocated to keep you and the final decision to part ways was made by me. They are not at fault and I urge each of you not to place any blame on them.

On departures

We face the tough reality of parting ways with ShopBackers who have grown alongside us. We will do our very best to take care of you. To support you in the transitory period, we are offering you the following enhanced severance package:

• Notice Period : You will receive pay for at least 2 months of your notice period, in line with notice periods as per your employment contract or local statutory guidelines, whichever is longer.

• Severance Payment : In addition, you will receive 1 month of severance pay for every full year of your service or based on local statutory guidelines, whichever is higher. For example, if a team member has been at ShopBack for 3 years and 1 month, they will get at least 3 months' severance pay.

• Bonus or Commissions Payment : You will receive a bonus equivalent to 1 month pay, which will be prorated if you have yet to complete a full year of service. If you are a Business Development (BD) and Advertising Sales (Ad Sales) team member who is on the Sales Commission Scheme instead, the commissions you are eligible to receive (tabulated till the end of Q1 2024) will be paid out to you.

• Leave Encashment : Accrued and unutilised Annual Leave, Off-In-Lieu, Birthday Leave and Maternity / Paternity Leave will be encashed (if applicable, as of last date of employment).

• Learning and Development : You will receive a full year's worth of Individual Development Plan (IDP) Budget to assist you in continued learning.

• Healthcare : You will receive an extended medical insurance coverage up till 30 June 2024, in markets where this is currently available and subject to terms limited by local insurance providers. You will also continue having access to mental healthcare support (via the Intellect app) till 30 June 2024.

• ESOS Vesting : The vesting schedule of your ESOS grant(s) will be accelerated to the next tier.

• Career Transition Support : Connecting our team members leaving ShopBack with new job opportunities is one of our top priorities. Depending on your location, you will be provided support in the form of either (1) CV reviews, mock interviews, and access to a professional coach, or (2) a Career Transition Support Allowance, as pre-determined by your leader in consultation with HR.

• Immigration support : We recognise this news is particularly challenging for visa holders. Your repatriation costs, including airfare and a budget for moving expenses, will be covered to ensure a seamless transition back home if that is the option you are pursuing. Our HR teams will also be available to advise on visa and immigration matters.

Most importantly, we will do our best to treat everyone with respect and thoughtfulness. 

What will happen next

I acknowledge that we are anxious to understand what this means for each of us.

By 12:00 pm Singapore time today, ShopBackers we’ll be parting ways with will receive a message on Slack and a Calendar invite from our HR team. This message will include details of a meeting scheduled for later today with your leader and HR. We have chosen Tuesday, a day designated for Work from Office, for this announcement, as we believe that it is essential for team members to have a personal and direct conversation to address any questions that may arise.

Out of respect and to ease transition for departing team members, we have decided to keep all departures to the same day. Consequently, the last in-office day for those leaving the team will be today, Tuesday, March 19th 2024. Our HR teams will advise ShopBackers on their official last date of employment in the meeting later today. To allow for proper farewells, Slack communication channels will remain accessible to all departing ShopBackers on their mobile devices until the end of today.

Today is a difficult day for all ShopBackers, and especially so for our Muslim ShopBackers who are also fasting during this period. We recognize the need for everyone to have the time and space to process this news. As such, we will officially commence a day off for the remainder of today, effective immediately at the end of Town Hall. You may choose to stay in the office or leave early; team members with meetings scheduled with your leader and HR may attend in-person, or via Google Meet.

Most importantly, do be there for one another.

Final words

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. 

I am deeply passionate about our mission and know that we are still in the early stages of our journey to become the World's Most Rewarding Way to Shop.

To ShopBackers who will be leaving us, I can’t put into words how sorry I am. Please know that our members, merchants, and the company have greatly benefited from your contributions. I am deeply grateful for the talent and dedication you have shown. This situation is not a reflection of your abilities or efforts, and I sincerely thank you for the time and energy you have invested with us. 

Having had the privilege to cross paths with many of you, I cherish more than just our collective efforts in building a company. The journey towards becoming better professionals, the shared joys, and the camaraderie will be deeply missed by me and many others.

To our remaining ShopBackers, I understand this news may raise questions and concerns for you as well. Please know that we are committed to addressing concerns, as we always have. Right now, let's focus on supporting our team members who are leaving. A reduction of this magnitude will necessitate changes in the way we work. In the coming days and weeks, we will share more on our path forward.

While today is a challenging day in our journey, let's navigate through these tough times together and come out stronger. 

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Thank you.

Henry