Qoo10 lays off over 80% of Singapore employees amid financial struggles

SINGAPORE – In a significant restructuring move, e-commerce platform Qoo10 has laid off more than 80% of its Singapore-based workforce over the past two weeks. Despite the mass retrenchments, the platform continues to operate, although the future remains uncertain.

The layoffs come in the wake of troubling news that Qoo10’s South Korean operations had defaulted on payments to local merchants and consumers. Reports indicate that Singapore employees began receiving notices of possible impacts on the local headquarters shortly after the South Korea news broke late last month.

Speaking to MediaCorp, a retrenched employee revealed that the first batch of layoffs occurred on 13 August, impacting workers from almost all departments, with the exception of the Human Resources team.

“A total of about 90 employees have been affected. Originally, there were 110 employees here. Now, the only ones left are senior management,” the employee stated, emphasizing that the remaining few staff members are solely focused on maintaining the platform’s day-to-day operations.

The retrenched staff reportedly comprised mostly Singapore citizens, with only three foreigners among those affected. According to insiders, Qoo10 expressed regret in letters sent to employees, apologizing for the layoffs and stating that it was not the company’s intention to reduce the workforce.

However, one former employee noted, “There are no benefits after the layoffs because the main reason is that there is really not enough money.”

The atmosphere at Qoo10’s Singapore office reflects the scale of the downsizing. “The two-story office is full of empty desks. If there are really people, there are less than ten,” another former employee remarked, suggesting that the company might be preparing to either sell off its assets or shut down completely.

In response to the situation, Singapore’s Ministry of Manpower confirmed it is closely monitoring developments at Qoo10. The labour movement, while acknowledging that the company is not part of any of its unions, has assured that it will offer support to affected employees if necessary.

For now, Qoo10 continues its operations in Singapore, but the company’s future hangs in the balance as it grapples with financial difficulties.

TISG/