Dear reader,
Recently, tech startups in Southeast Asia have encountered significant challenges, leading to a series of layoffs throughout the region. ShopBack, a prominent shopping rewards platform, is the latest company to reduce its workforce.
ShopBack’s decision to cut 24% of its workforce, which amounts to 195 employees, is part of a strategic shift towards sustainability and efficiency following a period of rapid expansion.
CEO Henry Chan explained that ShopBack focused heavily on expansion rather than sustainability in 2021 and early 2022, growing the team from 550 to over 900 during favorable economic conditions. However, as market conditions changed in Q2 2022, making aggressive growth unsustainable, the company shifted its focus to cost efficiency, ultimately resulting in the layoffs.
Chan’s candid message highlights the seriousness of the decision and his personal responsibility for pursuing overly ambitious growth strategies.
By emphasizing the goal of minimizing future layoffs through more substantial reductions, Chan underscores the company’s long-term vision for stability and resilience.
As businesses globally navigate economic uncertainty, ShopBack’s strategic realignment offers valuable lessons in adaptability and prudent decision-making for sustainable growth.
Sainul,
Editor.
NEWS
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The post Ecosystem Roundup: ShopBack cuts 195 roles | New Kaya Founders funds to back 30-40 startups | EFishery acquihires DycodeX appeared first on e27.