Plum food delivery to cut entire staff
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Food delivery startup Plum has laid off its entire staff, casting doubt on its continued operations in Singapore and its home market of Hong Kong. According to a report, Plum co-founder Desmond Clinton Cheung, who is also the company’s GM, said full-time contracts for all 110 workers, including his own, had been terminated. The company is creating a new structure which would give staff who wish to remain with the company an equity ownership.
“In the past, they were salaried staff and they would become shareholders,” he said.
Plum was founded in Hong Kong a year ago and Cheung said it may have grown “a bit fast”.
Efforts to reduce losses, including laying off 40 staff several months ago, had not worked and Cheung said he believed the new company structure offered an opportunity for the company to continue trading on a more sustainable basis.
Questions & Answers
Q.Why has Plum decided to lay off its entire workforce?
Why has Plum decided to lay off its entire workforce?
Plum’s co-founder Desmond Clinton Cheung stated that efforts to reduce losses, including a previous round of redundancies, had been unsuccessful. He believes the new company structure is necessary for the company to trade on a more sustainable basis.
Q.What is the new company structure Plum is implementing?
What is the new company structure Plum is implementing?
Plum is creating a new structure where staff who wish to remain with the company will be offered equity ownership. Previously, they were salaried employees, but will now become shareholders in the company.
Q.How many employees has Plum laid off in total?
How many employees has Plum laid off in total?
Plum has laid off all 110 full-time workers, including co-founder Desmond Clinton Cheung. This follows an earlier round of redundancies several months ago, when 40 staff were let go.
Q.What led Plum to make these drastic changes to its operations?
What led Plum to make these drastic changes to its operations?
The company may have grown too quickly since its founding a year ago in Hong Kong. Despite previous efforts to reduce losses by laying off staff, these measures had not been effective.
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