In a recent development, Chinese fast-fashion online retailer Shein has made a strategic move in its Singapore operations by laying off 17 employees from its IT research and development (R&D) team. This decision comes amidst the company’s preparations for its initial public offering (IPO) in London, as it abandons its earlier plan to go public in New York.
The Background
The news of the layoffs at Shein’s Singapore office was first reported by local media outlets, highlighting the company’s ongoing restructuring efforts. Despite the downsizing, Shein has assured that it will continue to expand its business in Singapore. The timing of the layoffs, coinciding with the IPO preparations, has raised questions about the company’s strategic priorities.
Shein’s Statement
Responding to queries from The Straits Times, Shein explained that the restructuring was part of its global expansion strategy, focusing on localization and efficiency improvements. The company has expanded its operations in Singapore by constructing new offices and is now reallocating certain positions to other markets.
The company has been expanding its business in Singapore to accommodate an increasing number of employees and has constructed new offices, Shein said. At the same time, we have restructured our IT R&D team in Singapore, moving some positions to other markets as part of our continued global expansion, localization, and efficiency strategy.
Impact on Employees
The affected employees were informed of the layoffs on September 25th. However, Shein has not disclosed whether it provided severance packages to these employees or revealed the current headcount of its Singapore team.
We are committed to working with the affected employees throughout the transition period, providing necessary support and assistance, as well as opportunities to apply for other positions to support localization work in other markets, the company added.
Shein’s Growth Story
Established in China over a decade ago, Shein has grown rapidly to become one of the fastest-growing fashion retailers in the world. The company boasts a global workforce of over 16,000 employees and serves customers in more than 150 countries.
Conclusion
The restructuring of Shein’s Singapore IT R&D team, despite the layoffs, is a testament to the company’s commitment to continuous improvement and global expansion. As Shein prepares for its IPO in London, it remains focused on optimizing its operations and achieving sustainable growth. While the layoffs may have caused some concern among employees, the company’s efforts to provide support and opportunities for reintegration into other markets demonstrate its dedication to employee well-being.
References
- The Straits Times
- Reuters
- Fashion United
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