Earlier this week, Singapore-based e-commerce platform Carousell announced it was cutting 76 roles—approximately 7% of its total workforce. This follows a previous round of layoffs in December 2022, which saw 110 employees let go.
Retrenchments are no longer a rarity. Since the start of 2022, many organisations, including some of the world’s largest and most profitable companies like Amazon, Meta, and Alphabet, have conducted multiple layoffs. Closer to home, Singaporean companies such as ShopBack, Ninja Van, and Sea Group have not been immune to this trend, with several high-profile retrenchment exercises over the past two years.
Many of these retrenchments also come from high-profile companies, which makes us wonder: Has retrenchment been normalised, and are we becoming too accepting of job insecurity as an inevitable part of modern work life?
Read Also: Why Singapore Employees Need To Be Ready For Retrenchment In 2024
Normalising Retrenchment Isn’t A Good Thing
In the 1990s and early 2000s, retrenchment in Singapore was usually a consequence of a company shutting down entirely, or a business division exiting the Singapore market. Retrenchments were closely tied to situations where a company could no longer sustain its operations locally, either due to financial difficulties or structural challenges in the economy.
Today, however, the landscape has shifted. Retrenchments are increasingly occurring even in companies with ample capital reserves, successful fundraising efforts, or robust profitability. This trend mirrors what we’ve seen in the U.S., particularly within the tech industry, where some of the biggest and most profitable companies have conducted multiple layoffs despite reporting healthy profits.
While it’s important to emphasise that retrenched workers are not at fault and should never bear the blame for their situation, we must also be cautious about normalising retrenchment—especially when it involves clearly thriving companies. More often than not, these layoffs reflect a prioritisation of profits over people, driven by a desire to streamline operations, maximise shareholder returns, or simply maintain a lean workforce.
It is equally critical not to glorify such companies as being “responsible” merely because they offer compensation packages or outplacement support to affected employees. While these measures may soften the blow, they do not erase the broader implications of layoffs that could have been avoided in the first place. Normalising this practice risks creating a corporate culture where retrenchment becomes an acceptable tool, even when the circumstances do not justify it.
Read Also: Lazada Singapore Retrenchment: Could It Have Been Done Better?
Once Bitten, Twice Shy
Many young workers today are drawn to fast-growing startups, enticed by the allure of joining the next “rocket ship” and the promise of rapid career growth, dynamic work environments and potentially lucrative opportunities.
While these companies often offer exciting perks and opportunities, workers need to recognise that startups operate in inherently riskier sectors. Their (future) success is far from guaranteed, as they often navigate volatile markets, aggressive competition, and the pressures of scaling quickly. In a tight fundraising environment, they will struggle.
In contrast, traditional and more established industries—while sometimes perceived as less glamorous—may offer greater job stability and predictability. For those seeking security in their careers, these sectors can provide a more dependable option, especially as individuals grow older and begin to prioritise stability over the fast-paced, high-stakes environment of startups.
It’s important to emphasise that retrenchment is never the employee’s fault. Layoffs are typically driven by broader business decisions, external market factors, or management strategies beyond an individual’s control. However, workers can make deliberate choices about the industries and companies they align themselves with.
Rather than jumping from one startup to another, hoping to find the perfect opportunity (that may not exist), some may find it more prudent to seek roles that align with their long-term career goals.
Read Also: Would The Great Resignation Become The Great Retrenchment?
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