Shein lays off 17 employees in Singapore
Chinese fast-fashion online retailer Shein laid off 17 employees at its Singapore headquarters on Sept 25 even as it said it will 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 of times above acceptable levels. Other affected retailers found to have products with the toxic substances include Temu and AliExpress.
One of these substances is phthalates, which are chemicals used to make plastics more flexible.
In the same month, Reuters also reported that Shein found two cases of child labour at its suppliers in 2023, according to the retailer’s 2023 sustainability report.
Shein said in the report that it had suspended orders from the suppliers that had employed children under 16, sourcing from them again only after they had strengthened their processes, including checking workers’ identity documents.
Get The New Paper on your phone with the free TNP app. Download from the Apple App Store or Google Play Store now