PropertyGuru axes 174 employees, shuts 3 business units
They are Sendhelper, data and software solutions, and PropertyGuru Finance
PROPERTYGURU axed 12 per cent of its employees on Feb 13, a move that comes after being taken private by private equity player EQT Capital.
In a note to employees, the new executive chairman Trevor Mather announced that 174 employees will be axed as the property platform seeks to streamline operations. The layoffs are across PropertyGuru, with three business units – Sendhelper, data and software solutions, and PropertyGuru Finance – shuttering.
PropertyGuru Finance, which was launched in 2020, deals with mortgage advisory, and Sendhelper was an acquisition back in October 2022 for the property platform to enter home services such as cleaning and maintenance.
This round of layoffs follow another round in February 2024, with 79 employees axed as part of a strategic review. This review will also close unprofitable units.
Affected employees will receive one month’s salary per year of service capped at 12 months or statutory severance – whichever is higher. An additional one month’s salary will also be paid out.
Performance bonuses for 2024 will be paid out, and three months of extended medical insurance and access to the employee assistance programme are being offered. Affected employees will get three months’ access to outplacement assistance, including access to a personal career consultant.
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They will also be able to retain their work laptops. Visa and relocation support is being offered, with up to three months of extended unpaid leave, repatriation assistance and support for early termination of rental leases.
Core markets
This is part of PropertyGuru’s adjustments to prioritise its marketplace business. Corporate development and investor relations functions will be phased out as part of the transition to a private company.
There will be a focus on maintaining PropertyGuru’s position in its core markets, focusing on enhancing consumer and customer experience and increasing the value provided from the marketplace business. The company will also focus on driving sustainable long-term growth.
“To sharpen this focus, we will direct all our energy, resources and talent towards our marketplaces in Singapore, Malaysia, Vietnam and Thailand,” said Mather.
As a result, PropertyGuru will be phasing out or discontinuing initiatives outside of its four core markets.
“This belief in marketplaces is why EQT invested in PropertyGuru and why our new board has come together – we are aligned in our vision for the company’s future success,” said Mather.
The latest results for PropertyGuru before it delisted showed widening losses. It posted a loss of S$16.1 million for the second quarter of 2024 ended Jun 30, compared with S$6.5 million in Q2 2023. Revenue for Q2 2024 rose 10.3 per cent to S$40.7 million from S$36.9 million a year prior.
EQT took PropertyGuru private after making an offer at US$6.70 a share, valuing the company at US$1.1 billion in August 2024. The acquisition completed on Dec 13, 2024, with the company ceasing to trade on the New York Stock Exchange after.
Hari Krishnan, then PropertyGuru chief executive, stepped down shortly after the delisting on Jan 13 after a decade in the role. Lewis Ng, former PropertyGuru chief business officer, will return as the new CEO.
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