SINGAPORE: Shein, the Chinese-founded fast-fashion online retailer, has announced the layoff of more than 20 employees at its Singapore headquarters on Wednesday. This decision comes as the company restructures its global IT research and development centre, amid doubts about its plans for an initial public offering (IPO) in London.
According to the South China Morning Post, Shein said that the affected employees were notified on Wednesday. These layoffs are part of a larger effort as the company prepares to apply for an IPO in London, having previously abandoned plans to go public in New York due to political concerns from US lawmakers. It has encountered scrutiny in the UK as well, which could put its listing prospects there at risk.
Founded by Chinese entrepreneur Xu Yangtian, known as Sky Xu, Shein has become popular for its low-cost clothing, particularly in Western markets, including the US. However, since relocating its headquarters from China to Singapore, it has faced challenges in establishing itself as a global brand.
The company is restructuring its IT R&D centre as part of an ongoing strategy aimed at global expansion, localisation, and improved efficiency.
Despite the layoffs, Shein stated that it plans to keep expanding its operations in Singapore and is hiring for multiple positions. /TISG
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