Singapore’s Carousell lays off 76 workers, cites ‘slowdown’ in consumer demand
The job cuts by Carousell reflect a wider trend in the tech sector due to overexpansion and economic headwinds, an analyst says
Singapore-based online marketplace Carousell has laid off 76 employees, or 7 per cent of its workforce, reflecting a downsizing trend in the tech sector that analysts attribute to overexpansion and its vulnerability during an economic downturn.
Explaining the reasons for the lay-offs announced on Friday, a Carousell spokesman told This Week in Asia that “these adjustments aim to ensure the long-term sustainability and operational efficiency of our group”.
“Affected roles were from both business and tech departments … with ongoing slowdown of consumer demand, we sought to proactively make adjustments to ensure the long-term sustainability and operational efficiency of our Group,” the spokesman said.
However, the spokesman said the company believed that there was “immense growth potential for recommerce in the region” and would not be changing its strategy.
The firm’s second round of job cuts in two years followed a 10 per cent staff reduction announced in December 2022.
At that time, co-founder and Chief Executive Quek Siu Rui admitted to being “too optimistic” about Carousell’s outlook, noting that hiring and expenses had outstripped its returns. He cited a “worsening macroeconomic environment” of high inflation, geopolitical risks and supply chain disruptions.
