Property technology firm PropertyGuru has laid off 174 employees, affecting 12 percent of its workforce, as it shuts down three business units to focus on its core online marketplace.
The affected units are Sendhelper, a property maintenance service acquired in 2022, PropertyGuru Finance, which provided mortgage advice, and its data and software solutions unit. Additionally, the corporate development and investor relations departments will be phased out following the company's transition to a private entity.
This restructuring comes after PropertyGuru was delisted from the New York Stock Exchange in December 2024, following a US$1.1 billion (S$1.47 billion) acquisition by EQT Private Capital Asia.
A company spokesperson stated that while 34 employees with data and fintech expertise were redeployed, the layoffs were necessary after considering all alternatives. Affected employees span multiple markets and functions.
To support those impacted, the company is providing a severance package that exceeds local requirements. The package includes one month’s salary per year of service, capped at 12 months, or statutory severance, whichever is higher. A goodwill payment of one month’s salary and performance bonuses for 2024 will also be given. Employees will receive extended medical insurance for three months, access to an employee assistance program, and outplacement support. They will also be allowed to keep their work laptops.
For those on work visas, additional support includes up to three months of unpaid leave, assistance with repatriation, and help in terminating rental leases early.
In an internal memo, executive chairman Trevor Mather explained that PropertyGuru aims to maintain its leadership as a real estate marketplace in Singapore, Malaysia, Thailand, and Vietnam. He emphasized that the company’s top priority is to strengthen its marketplace platform, which aligns with EQT’s investment strategy. As a result, initiatives outside of this focus are being discontinued.
The restructuring will also involve reorganization within the technology, marketing, finance, and human resources teams to accelerate growth. However, the company remains committed to its tech center of excellence in India.
The layoffs come just weeks before the return of former chief business officer Lewis Ng, who is set to take over as chief executive in March.
This is the second round of layoffs in a year, with 79 employees retrenched in February 2024.
Although PropertyGuru is not a unionized company, some employees are members of the Singapore Manual & Mercantile Workers’ Union (SMMWU). The union has stated that affected workers can access job-matching services and career guidance through NTUC’s Employment and Employability Institute.
The restructuring reflects PropertyGuru’s shift toward a more focused business model, aiming for long-term growth and sustainability in the competitive property technology sector.
Comments
Post a Comment