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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.
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 :
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 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.
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:
Most importantly, we will do our best to treat everyone with respect and thoughtfulness.
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.
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.
Thank you.
Henry
The ShopBack Group is Asia-Pacific’s leading shopping, rewards, and payments platform, serving over 40 million shoppers across 11 markets. In 2023, the Group expanded its offerings into Germany, signalling its entry into the European market.
Driven by the vision to be the world's most rewarding way to shop, ShopBack is dedicated to saving members money and time, while delivering delightful experiences with every purchase. The platform also enables merchants and brands to engage with their members in a cost-effective manner.
Founded in 2014, ShopBack now powers over US$4 billion in annual sales for over 20,000 online and in-store partners. Facilitating upwards of half a million transactions daily, ShopBack continues to provide value to both members and merchants through its innovative offerings. Notably, its payment solution, ShopBack Pay, offers members a convenient and rewarding payment option at checkout.
