Yeo Hiap Seng axes 32 employees in Singapore amid changing market trends, higher costs

BEVERAGE manufacturer Yeo Hiap Seng (Yeo's) announced Tuesday (Apr 5) that it has retrenched 32 employees in Singapore under its long-term plan to transform its global business.

In a bourse filing, the heritage brand said it is changing its business model in Singapore due to changing consumer patterns and retail conditions as well as increasing cost pressures.

"This was a very difficult decision for us to make. The changing market conditions and cost inflation meant that the group has had to evolve our business service model to be more efficient," said Yeo's Group chief executive Samuel Koh.

"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 company said the change in business model and retrenchment exercise in Singapore will reduce the group's on-going operating costs.

It noted that the affected workers represent less than 2 per cent of its total workforce of 1,900.

The group expects to incur a one-off restructuring charge, with separation packages to be given to the retrenched staff to help them through the transition.

The quantum of this restructuring charge will be finalised later, it said.

Yeo's added that it is working with the Food, Drinks and Allied Workers Union (FDAWU) and the National Trades Union Congress' (NTUC) Employment and Employability Institute (e2i) to extend training and placement support and career guidance to those affected.

"At Yeo's, we have always valued our people and we are committed to providing the necessary support to help all our affected colleagues," Koh said.

Shares of Yeo Hiap Seng closed S$0.01 or 1.2 per cent higher at S$0.87 on Tuesday, before the announcement.