PropertyGuru, a prominent player in the property technology sector, recently announced the difficult decision to lay off 174 employees, accounting for about 12 percent of its workforce. This move comes as the company closed three business units – Sendhelper, PropertyGuru Finance, and its data and software solutions department. The impact of this decision resonates not only with the workforce but also with the future trajectory of the company.
Unveiling the Impact on Workforce
Executive chairman Trevor Mather expressed the challenges of this decision, emphasizing the necessity for long-term growth and success. The affected employees will receive a severance package, including one month’s salary per year of service, with a cap at 12 months. Additionally, a “goodwill payment” equivalent to one month’s salary will be provided. Eligible performance bonuses and commissions will also be honored for departing staff.
The company has taken a proactive approach in supporting the affected employees during this transition. They will have access to extended medical insurance or equivalent payment for three months, along with career and job search assistance. Furthermore, employees facing visa, relocation, or financial constraints will be granted up to three months of extended unpaid leave, adhering to local regulations, to navigate these challenges.
Company Restructuring and Future Prospects
With an eye on the future, PropertyGuru is set to phase out its corporate development and investor relations departments as it moves towards becoming a private entity. This shift was catalyzed by the acquisition of PropertyGuru by EQT Private Capital Asia in December 2024, marking a significant milestone for the company. This acquisition, valued at an equity of around US$1.1 billion, paved the way for strategic realignments within the organization.
As part of the restructuring process, PropertyGuru intends to revamp teams across various departments, including technology, marketing, finance, and people and culture. The goal is to enhance focus and efficiency, ensuring a more agile and effective organizational framework. Mr. Mather reiterated that these decisions were made with careful consideration, reflecting the company’s dedication to building a streamlined and resilient structure for future endeavors.
In conclusion, the recent layoffs at PropertyGuru underscore the dynamic nature of the business landscape, where companies must adapt swiftly to external forces and market conditions. While these changes may bring temporary disruptions, they also pave the way for renewed growth and sustainability in the long run. As PropertyGuru navigates through this transitional phase, the commitment to supporting its employees and fostering a more focused organizational culture remains at the forefront of its priorities.
