ONLINE ad and classified platform Carousell has laid off 110 employees, representing 10 per cent of the platform’s workforce.

This move is an effort to cut costs and accelerate the path to profitability as soon as possible, as the platform navigates current economic uncertainty. In a statement on its website, co-founder Quek Siu Rui admitted that he was too optimistic about the pace of Carousell’s impact versus its investments made in hiring to double down on new initiatives.

Larger teams led to a lack of clarity in decision making and coordination to get things done.

Quek said he and the company’s leaders had found many non-people cost savings. Carousell will be moving from its current premises at Rochester Park to an office with significantly lower rent, and co-founders and senior leaders will take pay cuts.

“Growing with more discipline and focus will exact a heavy price: We will have to part ways with some of you – our teammates, our supporters and our friends, who have believed and worked so hard on our mission together,” said Quek.

Impacted employees will get at least three months of compensation and accelerated employee stock options vesting for those who have yet to hit their first-year cliff, among other benefits.

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The Creative Media and Publishing Union (CMPU) has issued a statement saying that it is working with Carousell to ensure the layoffs are in accordance with the NTUC Fair Retrenchment Framework and the Tripartite advisory on Managing Excess Manpower and Responsible Retrenchment. CMPU and Carouselll are working with NTUC’s Employment and Employability Institute (e2i) to provide employment facilitation and assistance, including job matching and career coaching.

Carousell’s most recent funding round in September 2021 raised US$110 million and pushed the platform into the unicorn club with a US$1.1 billion valuation. In its latest financial statement for FY2021, revenue rose 21 per cent from US$40.6 million to US$49.5 million, according to data platform VentureCap Insights. Losses for FY2021 also fell 34.6 per cent from US$63.7 million to US$41.5 million.

Founded in 2012, Carousell counts investors such as Telenor Group, Rakuten Ventures, Sequoia Capital India and EDBI as shareholders.

“Moving forward, we will sharpen our priorities as a company, keep a watchful eye on costs and only invest in high conviction initiatives that are properly set up for success,” added Quek.