Gardenia axes 141 staff in Singapore as it shifts bakery production to Johor Bahru

[SINGAPORE] Bread maker Gardenia Foods will move its bakery operations from Singapore to Johor Bahru, Malaysia, with 141 staff at its Pandan Loop facility to be retrenched.

The move is part of “ongoing efforts to enhance operational efficiency and maintain competitiveness amid an increasingly challenging global environment”, said Gardenia on Wednesday (May 20).

Production at Gardenia’s Pandan Loop manufacturing facility will cease on Jun 30.

Singapore will remain Gardenia’s central hub for key corporate functions with about 250 employees post-retrenchment, said the company.

Its Singapore team will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and Health Promotion Board.

Gardenia’s move comes two months after Tiger Beer maker Asia Pacific Breweries Singapore said it would phase down large-scale brewing operations in Singapore and move them to Malaysia and Vietnam.

In March, beverage brand Yeo Hiap Seng also announced plans to consolidate its canned-drink manufacturing in Malaysia.

Gardenia informed its employees of the decision at an internal meeting this morning and said “affected staff will receive the appropriate notice period and support in line with local regulations and guidelines”.

The company added that it is also considering eligible employees for suitable roles within the group’s network of operations where possible.

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Mainboard-listed parent company QAF fully owns and operates Gardenia in Singapore, while its Malaysia operations are a 50-50 joint venture with Tradewinds.

QAF in February reported a 62 per cent year-on-year increase in net profit to S$35.9 million from S$22.2 million for the second half of its 2025 financial year. Meanwhile, the full-year figure rose 15 per cent to S$40.3 million.

This was despite revenue coming in flat for both reporting periods, with higher profit driven by the doubling of the share of profits from joint ventures.

Union informed in advance

The Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress (NTUC), was informed in advance, said Gardenia.

“The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees,” the company added. Gardenia said it will also sponsor one year of union membership for affected staff.

FDAWU will connect affected employees to the labour movement’s network, such as NTUC’s Employment and Employability Institute (e2i).

Singaporeans and permanent residents will be able to use e2i’s job matching services, career coaching and skills upgrading advisory.

Shares of QAF slipped S$0.005 or 0.5 per cent to S$0.99 as at 1.02 pm on Wednesday, after the announcement.