The job cuts by online fast-fashion retailer Shein at its Singapore headquarters reflect how the Chinese-founded company is grappling with a series of challenges in the cross-border e-commerce business.
While the number of employees affected is only a small percentage of the company’s total headcount, it is the first time that Shein has confirmed job losses since it relocated its headquarters to Singapore from China in 2021. Shein has over 16,000 employees worldwide, according to its 2023 Sustainability and Social Impact Report.
Ivy Yang, founder of Wavelet Strategy, said the job cuts “could be the beginning of more lay-offs” at Shein, but likely would not have much impact on its operations “at this current scale”.
The announcement came as the US moved to close the so-called import-tax loophole enjoyed by Chinese companies, which exempts shipments valued under US$800 from import duties, taxes and rigorous screening under a de minimis rule. Temu and Shein alone were likely to be responsible “for more than 30 per cent of all packages shipped to the US daily under the de minimis provision”, according to an estimation by the US House Select Committee last year.