Ninja Van axes more than 20 employees in tech team in Singapore

THIRD-PARTY logistics platform Ninja Van laid off about 10 per cent or 21 employees from its tech division on Monday (Apr 29).

The employees were all based in Singapore and represented about 20 per cent of the tech team here. The cuts were across the board and not focused on any particular team, according to a source familiar with the matter, who has asked for anonymity.

Affected employees were informed after an all-hands tech team meeting on Monday.

The company said in an e-mail viewed by The Business Times that the layoffs were the last resort, and came after cutting costs across the board.

In a statement, Ninja Van said that cost optimisation is a process that the company continually undertakes to ensure sustainable growth. In line with that direction, the tech department has implemented cost-control measures such as “infrastructural reorganisation and outsourcing”.

“Following a recent cost evaluation, it was determined that less than 10 per cent of the region’s tech team is no longer required,” said a Ninja Van spokesperson. Affected employees have received a reasonable severance package to support their transition out of the company, the statement said.

According to Ninja Van, the retrenched employees were offered a month’s salary for every year of service, and still had access to the office and the work messaging platform, G-Chat until the end of the week, as well as garden leave till their official last day on May 31.

The deadline for exercising vested options for those laid off will be extended to a year, with medical insurance and mental health support valid until Jun 30. Job placement support is also being offered to axed employees.

Ninja Van is the latest in a string of late-stage startups laying off staff as a last resort to cut costs. Cashback and rewards platform ShopBack recently cut 195 roles in March and e-commerce platform Lazada cut staff across markets with over 100 employees affected in Singapore.