Thai omnichannel fashion retailer, Pomelo, has laid off about 55 employees – equivalent to 8 per cent of its headcount – following other tech companies in Asia downsizing this year due to challenging economic conditions.
Bloomberg reports that Pomelo has confirmed it is simplifying its processes “to move toward more sustainable growth”. In August, the fashion retailer bagged about US$10 million from its existing investors, including Jungle Ventures.
A source told Bloomberg that the fashion startup is seeking further external capital and has reached out to banks, including Morgan Stanley to assist.
Founded in 2014 by Korean-American David Jou, Pomelo has grown from an online-only fashion business to a major omnichannel retailer in Southeast Asia, with 26 physical stores across Thailand, Singapore, Malaysia and Indonesia, and online delivery to 50 countries.
During the past few months, Southeast Asia has seen several tech-driven companies downsizing in the region.
Delivery platform Foodpanda recently reported laying off 60 employees in Singapore, 5 per cent of its team in the country, due to the “critical need” to reduce expenses to remain competitive. According to The Strait Times, the company also reportedly announced that it will discharge 150 staff, or 20 per cent of its headcount, in the Philippines, in addition to job cuts in Thailand.
On Wednesday, we reported that Shopee had rescinded dozens of job offers during the past two weeks after Sea reported widening losses and sharply slower revenue growth.
In June, Sea Group-owned e-commerce giant, Shopee, dismissed staff across several markets, including downsizing ShopeeFood and ShopeePay teams in Southeast Asia. Nearly half the number of staff of Shopee Thailand’s payment and food delivery arms were affected.
