Hypefast layoffs of 30% of employees in pursuit of profit targets
Hypefast reports net revenue of $43 million in 2022, acquiring 15 brands since its inception in 2020
Startups aggregator brands Hypefast confirms it has laid off 30% of employees, including contract and remaining in overlapping positions. The company argued that this step was taken in pursuit of sustainable growth, marked by better profitability and positive cash flow.
Not only that, Hypefast Founder & CEO Achmad Alkatiri said that this step was also taken as a form of the company's response to several challenges that are expected to occur next year, including an increase in sales costs such as merchant the higher the set variety channel, logistics costs and other related costs, as well as macroeconomic conditions.
"We have had profitable EBITDA since early 2022, but this is our effort to respond and prepare for some of the challenges expected next year [..] The aim is to continue to generate profits and achieve positive free cash flow while increasing our revenue ," he said in an official statement, Wednesday (23/8).
According to the latest data released by the company, it is recorded that the number of Hypefast employees has reached more than 350 people spread across Southeast Asia (Jakarta, Kuala Lumpur, Singapore and Bangkok). Thus, it is estimated that 105 employees will be affected.
To the affected employees, he ensures that he will continue to support them with job placements and future career opportunities as much as possible. The following benefits will be provided:
- Affected employees will receive severance pay in full compliance with Indonesian regulations;
- Advanced health insurance for the whole family until the end of the year;
- Relaxed ESOP norms;
- job support:
- Alumni Talent List — Hypefast will be launching a website to help affected talents find new jobs. There are employee profile pages, resumes, and work examples that can be accessed by prospective employers.
- Alumni Placement Team — Over the next few months, most recruiting teams will transform into Alumni Placement Teams to provide departing employees support to help them find their next job.
- Alumni Support Offered by Employees — Hypefast also encourages all remaining employees to take part in the program to help leaving talent find their next role.
"Every employer will be fortunate to have Hypefast alumni for their proven quality, dedication and anti-fragility. These talents work with us to scale quickly while building profitable businesses, and we are committed to helping them find the right employers." want to have talent like that," concluded Achmad.
It claims Hypefast achieved net revenue of $43 million in 2022, growing from $22 million in 2021. This performance was achieved without any new brand acquisitions in its portfolio, and was driven in large part by organic growth in key brands while diversifying its retail channel presence.
The company has invested in more than 15 local brands with a value of Rp 434 billion. Some of these brands include Luxcrime, Roughneck, Bonnels, Soleram, Nyonya Nursing Wear, Adeola Scarf, and others.