SINGAPORE – Chinese fast-fashion online retailer Shein laid off 17 employees at its Singapore headquarters on Sept 25 even as it said it would continue to grow its operations in the Republic.
The layoffs come as Shein prepares for an initial public offering in London, shifting from its previous plans to list in New York.
“As Shein continues to grow its operations in Singapore with a newly expanded office to accommodate its increasing workforce, the company has also restructured the Singapore arm of its IT research and development team, relocating some positions to other markets as part of its ongoing strategy for continued global expansion, localisation and to drive efficiency,” said Shein in response to queries from The Straits Times.
The workers affected were notified on Sept 25, the retailer said, though it did not comment on whether they were offered a retrenchment package and what its staff strength here is now.
The retailer added: “We are committed to working with the affected employees throughout this transition period, providing necessary support and assistance, as well as the opportunity to apply for alternative roles to support localisation efforts in other markets.”
Shein, which was founded in China, has grown rapidly in the past decade. According to Shein, it has more than 16,000 employees and serves customers in more than 150 countries.
The company has also been in the news recently over the quality of its products as well as its labour policies.
In May, the government of South Korea’s capital Seoul reported that children’s products sold by Shein were found to have contained toxic substances in amounts hundreds of times above acceptable levels.
The affected products were removed from its online catalogue while investigations were ongoing.
In August, the Seoul authorities also found that women’s accessories sold by Shein contained toxic substances, sometimes hundreds