F&B manufacturer Yeo Hiap Seng (Yeo’s) has let go of 32 staff in Singapore, in line with its long-term plan to transform its global business.
The move comes amid changing consumer patterns and retail conditions as well as mounting cost pressures.
“This was a very difficult decision for us to make,” Group CEO Samuel Koh said in an Apr 5 regulatory filing.
“The changing market conditions and cost inflation meant that the group has had to evolve our business service model to be more efficient. Yeo’s has a global footprint and this decision is consistent with our long-term strategic plan to transform and enhance the value of our business,” he added.
The change in business model and retrenchment exercise in Singapore will reduce the group's on-going operating costs.
The affected staff account for less than 2% of the company’s 1,900-person workforce.
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Yeo’s is also working with the Food, Drinks and Allied Workers Union and the National Trades Union Congress’ (NTUC) Employment and Employability Institute (e2i) to extend training, placement support and career guidance to the affected staff.
The group expects to incur a one-off restructuring charge, with separation packages to be given to the retrenched staff to tide them through the transition. The quantum of this restructuring charge will be finalised later, it said.
Shares in Yeo’s closed up a cent or 1.16% at 87 cents on Apr 5, before the announcement.
Cover image: Yeo's
