Tech releases in Southeast Asia mount as unprofitable commencement seek to develop their runways

Tech releases in Southeast Asia mount as unprofitable commencement seek to develop their runways

December 13, 2022: -More tech startups in Southeast Asia laid off workers as macro headwinds widened, dropping, and venture capitalists pushed startups to extend their runways.

The previous week, online marketplace Carousell stated that it was letting go of 10% of its headcount or approximately 110 positions.

In November, Indonesia’s GoTo Group, a merger between ride-hailing giant Gojek and e-commerce marketplace Tokopedia, cut 1,300 jobs or regarding 12% of its headcount.

Both firms cited challenging macroeconomic challenges. There are signs that we are coming to a recession if we are not in one.

Therefore, a Group and another regional firm are downsizing their headcount. According to local media, Sea Group laid off more than 7,000 employees over the previous six months.

“Founders to be prudent by managing costs in this atmosphere to make sure there is sufficient runway till previous 2024,” Jia Jih Chai, co-founder and CEO of Singapore-based e-commerce brand aggregator Rainforest. Chai was prior a senior vice president at Carousell and a managing director at Airbnb.

“There are signs that we are coming to a break if we are not already in one. Hence, customer demand will be slower in 2023,” Chai said.

In a note to Carousell’s workers, CEO Quek Siu Rui acknowledged “critical mistakes” were made. He added that he was “too optimistic” regarding the Covid recovery and thinking about the impact of growing his team too soon.

“The reality is that we were quick to increase our expenses and hire, but the returns took over expected,” said Quek, which adds that there have been cost-cutting measures in the previous few months. Carousell’s leadership is taking voluntary pay cuts.

About Us

We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.

Recent Posts

Embedded Insurance Specialist | Scott Walchek

Trōv is a global leader in embedded insurance, powering the future of digital insurance distribution and emerging mobility. Its robust insurtech platform empowers financial institutions and insurance incumbents to easily embed insurance products within other digital experiences to increase recurring revenue.

Keeping American Families Safe | Martin Burlingame

While only one in ten homes throughout the United States has flood insurance coverage, floods are the country’s most common and deadli-est natural disaster. Since 2000, they have cost American taxpayers $850 billion, two-thirds of the total cost of all natural disasters, yet only 1 out of 10 homes are insured for flood, and that number could soon be reduced.

Working with Gold Standards | Lori Murphy

Insurance needs to be more precise as there are solutions that protect the assets owned by the Property Managers (apartment units) and solutions that protect the Residents and their personal belongings. Which programs to offer and buy depends on each unique client’s needs.

Tech releases in Southeast Asia mount as unprofitable commencement seek to develop their runways