Carousell lays off 46 employees in S'pore

Homegrown online marketplace Carousell laid off 76 employees across its regional offices on Dec. 6.

They represent 7 per cent of the group's total headcount, a Carousell spokesperson told Mothership.

Amongst the roles affected, 46 were based in Singapore, and the rest were in countries such as Malaysia, Vietnam, and Indonesia, reported The Straits Times.

This was not the first time Carousell and its subsidiary had downsized its team in recent years.

In 2022, Carousell axed around 110 jobs, or 10 per cent of the group's headcount at the time, in a bid to "accelerate [its] path to profitability".

Earlier this year, Laku6, an Indonesian electronics recommence company acquired by Carousell in 2022, retrenched around 17 per cent of its workforce.

At the time, a Laku6 spokesperson said that the layoff aimed to bring "long-term success and sustainability" to the company, reported Tech in Asia.

Carousell statement

In a media statement, a Carousell spokesperson described the layoff as a "difficult decision".

According to the spokesperson, Carousell's chief executive officer (CEO) Quek Siu Rui informed his team about the layoff at a town hall on Dec. 6 morning.

Affected employees were also informed individually by their department heads and a human resources (HR) representative.

"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," read the statement.

These adjustments "aim to ensure the long-term sustainability and operational efficiency" of Carousell, added the spokesperson.

'Providing support for affected employees'

The spokesperson stated that Carousell is "grateful for the contributions" of affected employees and "will lend as much support as [it] can during this transition".

According to the spokesperson, these support measures included offering them one month's salary for every year of service and ensuring they receive at least three months' salary as compensation.

Where possible, Carousell will also "encash all paid time-off balances and flexible benefits" and "extend medical and insurance coverage for affected employees and their dependents to June 2025".

"We remain committed to working closely with the CMPU to ensure that all impacted employees receive fair compensation packages and are provided with the necessary support during their transition period," added the spokesperson.

CMPU statement

The Creative Media and Publishing Union (CMPU) told Mothership that Carousell had informed the union and the National Trades Union Congress (NTUC) about the retrenchment exercise.

According to CMPU, Carousell, who is a member of the union, had assured that it had "explored all alternative options" before the layoff, including redeploying affected employees to other suitable positions.

The union said it has 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.

These members and workers will also be provided with "the necessary support" while they transition to their next job, added CMPU.

Resources from CMPU, NTUC

CMPU said it will "offer job matching and career advisory resources to help displaced workers bounce back" with NTUC via the Labour Movement network.

These resources included "access to a large network of companies for job matching efforts" and NTUC Learning Hub, which "offers training and upskilling opportunities".

For affected union members who require skill upgrading, they will have access to the Union Training Assistance Programme (UTAP) funding to offset training course fees.

"CMPU will also assist members who may face financial hardship via various assistance programmes," read the statement.

Members can reach out to the union via email at [email protected] or phone at +65 6213 8510 for assistance.

More information about the career advisory and employment facilitation services by NTUC's e2i can be found here.

Top image via Google Maps