Dyson conducts 'surprise' layoffs in Singapore, leaving employees in shock and in 'low morale'
The retrenchment exercise on Tuesday (Oct 1) was conducted “very discreetly”, with employees unsure how many were laid off.
by Tang See Kit · CNA · JoinSINGAPORE: Dyson conducted a round of layoffs in Singapore on Tuesday (Oct 1) in a “surprise” move that has left employees here feeling shocked and in a state of “low morale”.
This comes about three months after the technology firm said Singapore, which serves as its global head office, was “not directly impacted” by a global restructuring that involved about 1,000 job cuts in Britain.
The retrenchment exercise on Tuesday was done “very discreetly”, with those impacted receiving an email notifying them of a “one-on-one” meeting, said an employee who was laid off on Tuesday and spoke on condition of anonymity.
“The HR representative will be in the room. Unfortunately, reason given (was) the job is redundant, and we need to pack our things and prepare to leave,” the employee said.
“We won't know who was called into the room... (I) saw lots of envelope.”
Those laid off were from the manufacturing and procurement departments, said another employee who also spoke to CNA anonymously. Both are unsure how many employees were let go on Tuesday.
Dyson had previously conducted a round of layoffs in Johor Bahru where it has a development centre, one of the employees said. But Tuesday’s retrenchment exercise in Singapore was unexpected, given how the firm had announced it was stepping up investments here.
“People are shocked and have low morale, as they aren't sure when their turn might come,” said the employee, adding that it came as a "surprise".
Another employee knew of at least 12 people being let go from various teams, such as research and development (R&D).
“Suddenly, people are taking their bags. I thought they are going out to other offices for meetings but … they are actually leaving,” the employee recalled, adding that the office atmosphere has been “solemn” all day.
Workers in Dyson's Singapore office are worried that Tuesday's round of layoffs is not the last, said the employee who spoke to CNA on condition of anonymity, citing how the July retrenchments in Britain were done “department by department and over a few weeks”.
“If they were to repeat the same, maybe next week, there will be another one?” the employee added.
In response to queries from CNA, a Dyson spokesperson said: “We constantly evolve the composition of our teams and take steps to ensure we have the right skills in the right places. Our ambitions in Singapore remain unchanged, and we anticipate that we will continue to grow here in the medium term.”
The company did not answer other questions about how many employees were laid off on Tuesday, the type of job roles that were made redundant and why, as well as how the company is assisting those affected.
UNION DISAPPOINTED
The United Workers of Electronics and Electrical Industries (UWEEI), which is affiliated to the National Trades Union Congress (NTUC), expressed disappointment at how little advance notice it was given.
"UWEEI was disappointed that the union was only given one day's notice of the retrenchment exercise, leaving insufficient time for meaningful discussion between both parties. UWEEI has escalated the matter to the Ministry of Manpower (MOM)".
UWEEI noted that those retrenched "fall outside its scope of representation under the collective agreement with Dyson", but it "stands ready to support affected workers".
The union added that it will, alongside NTUC's Employment and Employability Institute (e2i), help affected workers with job searches and job matching, as well as support with career coaching and job training.
It also urged companies to observe the guiding principles outlined in NTUC's Fair Retrenchment Framework, which are to protect the Singaporean core of the workforce, to preserve jobs and provide job support.
Affected Dyson workers may contact UWEEI for assistance.
When asked for its response to the union's statement, Dyson told CNA that it had "respectfully informed UWEEI in advance".
"Dyson is following all prevailing guidelines from the MOM and providing employees with the support they need, including outplacement services and EAP," it said, referring to employment assistance payments.
LONG-STANDING PRESENCE IN SINGAPORE
Dyson, founded by British billionaire James Dyson and best known for its vacuum cleaners, has been in Singapore for more than a decade, with the opening of its first office at Science Park in 2007.
Apart from serving as the firm’s global head office since 2019, Singapore is also a hub for Dyson’s research, engineering, advanced manufacturing and supply chain operations.
Singapore is where the firm’s patented digital motors are made, with one such motor rolling off the manufacturing line in Jurong every two seconds. Dyson also makes air purifiers, hair dryers and other appliances.
By 2025, next-generation batteries will also be produced in a new high-tech plant located in Tuas. Dyson had called the Tuas battery plant, which will be the size of 53 basketball courts, the most significant investment in advanced manufacturing in the company’s history.
In 2022, it said it would invest S$1.5 billion in its Singapore operations over the next four years, and reiterated an earlier commitment to hire more than 250 engineers and scientists across robotics, machine learning and other areas.
As of end-2023, Dyson employed more than 1,920 people in Singapore.
A separate statement from the Economic Development Board (EDB) said Dyson “maintains a significant presence” in Singapore across headquarters, innovation and advanced manufacturing activities.
“As Dyson reviews the composition of its teams to ensure it continues building up expertise in areas relevant to its business needs, EDB will work closely with the company and relevant government agencies to assist affected employees. This includes facilitating job placements with companies that require their skillsets and capabilities,” it added.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app