PropertyGuru Group will lay off 79 of its staff, or about 5 per cent of the company’s total workforce, and close down unprofitable units part of a strategic review, The Edge reported.
In an open letter to employees today (February 27), the company’s CEO and Managing Director, Hari Krishnan, said that the decision was made after “careful and objective identification of the roles for PropertyGuru’s next phase of growth”.
Roles within customer support will be redesigned across marketing, product and enterprise sales to serve customers “holistically and with enhanced value”.
Affected staff will be given severance pay of one month for each year of service capped at 12 months or country statutory severance pay, whichever was higher.
The company will also give a goodwill payment of one-month base salary and eligible 2023 annual performance bonus for affected non-sales staff, or sales commission for February and March for affected sales staff.
Additionally, PropertyGuru will extend company medical insurance, or a lump sum payment in lieu, and access to its employee assistance programme for three more months from the last date of employment. Affected staff will also be able to access an outplacement service for three months and keep their work laptops.
In order to “future-proof” the business, Krishnan adds that the company will be making “structural organisational changes”, including the closure of two of the company’s nine branches in Vietnam related to the company’s Marketplace business, which are operationally non-scalable and unprofitable.
The company will also consolidate technology delivery to “drive economies of scale” and to streamline its regional technology resources to improve collaboration.
Volatile market conditions and changing customer needs require us to adapt our strategy so that we can continue to grow sustainably. It’s essential that we periodically reassess our progress and take proactive steps to future-proof our business.
– Hari Krishnan, PropertyGuru Group’s CEO and Managing Director, on the layoffs
Featured Image Credit: PropertyGuru