Hong Kong unicorn Tink Labs undergoes layoffs and major restructure

Hong Kong smartphone rental startup Tink Labs, worth over US$1 billion after a recent fundraise, is undergoing layoffs and major restructuring, multiple sources tell Tech in Asia.

While the sources say the company was being acquired, a Tink Labs spokesperson clarified that this isn’t the case.

Tink Labs CEO Terence Kwok / Photo credit: Tink Labs

The company representative couldn’t go into exact details for now but said that the business is in the midst of transferring its operations to different entities. One of them is Blockone Limited, which the spokesperson stressed is entirely unrelated to the blockchain company bearing a similar name.

Sources add that most Tink Labs employees received termination letters following a global townhall meeting two weeks ago, when the restructuring was announced. Selected staff were notified this Monday that they were rehired under the entities that are continuing the Tink Labs business.

Employees that weren’t rehired will serve their notice periods, as stipulated in their contracts. Tink Labs founder Terence Kwok declined to reveal how many people were laid off. “That’s still a work in progress,” he tells Tech in Asia.

The spokesperson also explained that while all employees with Tink Labs contracts received termination letters, some related entities were unaffected. This includes Luxos, the startup’s luxury content arm.

Tech in Asia has also learned that some of the startup’s contracts with hotels will be transferred to Blockone, according to emails that Tink Labs sent out to partners.

As part of its profitability drive, the company is also suspending contracts that involve offering its services for free.

See: Inside the growing pains at smartphone rental unicorn Tink Labs

Tink Labs had been in the midst of fundraising, though the company representative declined to give an update about it.

Over the years, the firm has undergone several management reshuffles as it tinkered with its expansion strategy.

Kwok previously told Tech in Asia that the company is gross profitable, without providing a further breakdown of financial figures.

The company said it had over 500 employees in June.