PropertyGuru lays off 174 employees, shuts three business units

Property technology company PropertyGuru has laid off 174 employees, representing 12% of its workforce, and closed three business units as part of a restructuring effort. The company announced the changes last Thursday (13 Feb) through a statement on its website.

Executive chairman Trevor Mather stated that PropertyGuru had shut down its home service platform Sendhelper, its mortgage broker service PropertyGuru Finance, and its data and software solutions department.

The decision was attributed to the company’s focus on long-term growth and efficiency.

PropertyGuru, headquartered in Singapore, operates in multiple markets, including Malaysia, Vietnam, and Thailand.

When asked for details on the number of affected employees in Singapore and the specific roles impacted, a company spokesperson declined to provide a breakdown but confirmed that the layoffs affected staff across all regions and functions.

Severance and Support Measures

Mather acknowledged the difficulty of the decision, stating that it was made after thorough consideration. Affected employees will receive a severance package comprising one month's salary per year of service, capped at 12 months, or the prevailing statutory severance, whichever is higher.

Additionally, they will receive a one-month "goodwill payment."

Non-sales employees eligible for 2024 performance bonuses and sales employees with outstanding commissions will receive these payments based on their last day of employment.

The company is also offering further support, including three months of extended medical insurance or an equivalent financial payment, as well as job search assistance.

Employees facing visa, relocation, or financial challenges will be granted up to three months of extended unpaid leave, subject to local laws. PropertyGuru will also assist with repatriation and early termination of rental leases where necessary.

Restructuring and Transition to Private Ownership

Alongside the layoffs, PropertyGuru announced the closure of its corporate development and investor relations departments.

This move comes as the company transitions to a privately held entity following its acquisition by Asian investment firm EQT Private Capital Asia in December 2024. The acquisition, completed through an all-cash transaction, valued PropertyGuru at approximately US$1.1 billion.

As part of the restructuring, the company will reorganise teams in its technology, marketing, finance, and people and culture departments to enhance efficiency and focus.

Mather reaffirmed that these decisions were made with the goal of creating a "more focused, agile, and effective organisation."

Industry Trends and Market Conditions

The layoffs at PropertyGuru follow a broader trend in the technology sector, where companies have been reassessing operations amid economic uncertainties and changing market dynamics.

Several technology firms, including those in the property sector, have implemented workforce reductions in response to shifts in consumer behaviour, rising costs, and evolving investment strategies.

Despite these challenges, PropertyGuru continues to be a key player in the Southeast Asian property market as it navigates its new phase under private ownership.

While the impact of these changes on its operations and market position remains to be seen, the company's leadership has emphasised a commitment to maintaining its role as a leading property technology platform in the region.