Shein makes rare job cuts in Singapore as London IPO remains in limbo

The fast-fashion retailer is laying off more than 20 people in a restructuring of its IT R&D centre

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Shein has faced scrutiny over its China origins as it seeks an IPO in the UK. Photo: Reuters

Ann Caoin Shanghai

Published: 10:56pm, 25 Sep 2024Updated: 12:07am, 26 Sep 2024

Chinese-founded fast-fashion online retailer Shein is laying off about two dozen employees at its Singapore headquarters, the company said on Wednesday, as the e-commerce firm restructures part of its business amid doubts about its initial public offering plan in London.

More than 20 employees are affected by the lay-offs that are part of a restructuring of its global IT research and development centre, the company said in a statement to the South China Morning Post. The workers were notified on Wednesday.

The job cuts come as Shein is in the process of applying for an IPO in London after it abandoned an earlier plan to go public in New York amid political pushback from US lawmakers. It has since faced scrutiny in the UK as well, which could also jeopardise a listing there.

Shein, started by the low-profile Chinese entrepreneur Xu Yangtian, known as Sky Xu, pioneered the direct-from-China approach to selling cheap goods to international consumers by working closely with manufacturers. Its low-cost apparel proved popular in Western markets, including the US.

At the same time, the company has struggled to redefine itself as a global business since moving its headquarters to Singapore from China.