{"id":11822,"date":"2024-03-24T14:05:01","date_gmt":"2024-03-24T06:05:01","guid":{"rendered":"https:\/\/dollarsandsense.sg\/business\/?p=11822"},"modified":"2024-04-23T10:25:02","modified_gmt":"2024-04-23T02:25:02","slug":"why-singapore-employees-need-to-be-ready-for-retrenchment-in-2024","status":"publish","type":"post","link":"https:\/\/dollarsandsense.sg\/business\/why-singapore-employees-need-to-be-ready-for-retrenchment-in-2024\/","title":{"rendered":"Why Singapore Employees Need To Be Ready For Retrenchment In 2024"},"content":{"rendered":"\n<p>As geopolitical tensions boil over and the global economy cools, businesses may try to stay resilient by prioritising cost-cutting. For many companies, employees are the biggest business expense.&nbsp;<\/p>\n\n\n\n<p>Moreover, reducing headcount during such uncertain times can also prepare businesses to stay nimble \u2013 and go in a new direction more easily when new opportunities arise.<\/p>\n\n\n\n<p>For the rest of 2024, here are 3 reasons why employees need to be ready to lose their jobs \u2013 and be prepared to find a new role.<\/p>\n\n\n\n<p><strong><em>Read Also:&nbsp;<a href=\"https:\/\/dollarsandsense.sg\/business\/singapore-employers-prepared-older-workforce\/\">Why Singapore Employers Need To Be Prepared For An Older Workforce<\/a><\/em><\/strong><\/p>\n\n\n\n<h3 id=\"1-companies-are-retrenching-potentially-viewing-it-as-a-path-to-sustainability\"><strong>#1 Companies Are Retrenching \u2013 Potentially Viewing It As&nbsp;&nbsp;A Path To Sustainability<\/strong><\/h3>\n\n\n\n<p>We\u2019ve been reading about a wave of companies retrenching their employees this year. Some that have made it into the news in Singapore include&nbsp;<a href=\"https:\/\/corporate.shopback.com\/press\/a-message-from-henry-on-focus-and-sustainability---a-painful-decision\" target=\"_blank\" rel=\"noreferrer noopener\">Shopback letting go 24% of its employees<\/a>,&nbsp;<a href=\"https:\/\/www.channelnewsasia.com\/singapore\/lazada-retrenchment-fdawu-ntuc-package-benefits-4098186\" target=\"_blank\" rel=\"noreferrer noopener\">Lazada letting go an estimated 100 people<\/a>,&nbsp;<a href=\"https:\/\/www.campaignasia.com\/article\/unilever-to-make-layoffs-in-singapore-realign-marketing-roles-around-asia\/493831\" target=\"_blank\" rel=\"noreferrer noopener\">Unilever realigning its marketing team in Singapore<\/a>,&nbsp;<a href=\"https:\/\/www.todayonline.com\/singapore\/propertyguru-lays-79-employees-amid-comprehensive-review-operations-2371796\" target=\"_blank\" rel=\"noreferrer noopener\">PropertyGuru laying off 79 employees<\/a>,&nbsp;<a href=\"https:\/\/www.straitstimes.com\/business\/tetra-pak-to-close-singapore-factory-300-workers-affected\" target=\"_blank\" rel=\"noreferrer noopener\">Tetra Pak closing down in Singapore and 300 employees will be affected<\/a>,&nbsp;<a href=\"https:\/\/www.homeanddecor.com.sg\/shopping\/electrolux-closing-singapore-retrenchment\/\" target=\"_blank\" rel=\"noreferrer noopener\">Electrolux relocating its regional HQ from Singapore to Bangkok<\/a>, and more.<\/p>\n\n\n\n<p>This trend is not unique to Singapore either. Many of the biggest (and possibly smallest) companies globally are also looking to align its workforce with its requirements. They include Amazon to Google to Discord and Twitch.<\/p>\n\n\n\n<p><strong><em>Read Also:&nbsp;<a href=\"https:\/\/dollarsandsense.sg\/business\/mom-responsible-retrenchments-guideline-for-companies-fair-and-decent\/\">MOM Responsible Retrenchments \u2013 Guideline For Companies To Be Fair And Decent<\/a><\/em><\/strong><\/p>\n\n\n\n<h3 id=\"2-retrenchment-statistics-are-on-the-rise\"><strong>#2 Retrenchment Statistics Are On The Rise<\/strong><\/h3>\n\n\n\n<p>According to the Ministry of Manpower (MOM) the&nbsp;<a href=\"https:\/\/stats.mom.gov.sg\/Pages\/Labour-Market-Report-4Q-2023.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">rate of retrenchments more than doubled in 2023<\/a>. 14,590 workers were retrenched in 2023 compared to 6,440 in 2022.<\/p>\n\n\n\n<p>While more people may be looking for new roles, they will also be hit by a slowdown in job vacancies. In December 2023, the job vacancy to unemployment ratio was 1.74, compared to 2.30 in December 2022.<\/p>\n\n\n\n<p><strong><em>Read Also:&nbsp;<a href=\"https:\/\/dollarsandsense.sg\/business\/how-singapores-labour-market-performed-in-2023\/\">How Singapore\u2019s Labour Market Performed In 2023<\/a><\/em><\/strong><\/p>\n\n\n\n<h3 id=\"3-global-trends-higher-for-longer-interest-rates-rise-of-ai-e-commerce-slowdown\"><strong>#3 Global Trends: Higher For Longer Interest Rates; Rise Of AI; E-Commerce Slowdown<\/strong><\/h3>\n\n\n\n<p>As a small and open economy, Singapore has to adhere to global trends to stay relevant. An environment of higher interest rates will inevitably affect global growth \u2013 including in Singapore.<\/p>\n\n\n\n<p>With a signal that interest rates may stay elevated for a longer in 2024, investment sentiments may dampen on the back of higher borrowing costs.<\/p>\n\n\n\n<p>At the same time, the post-pandemic explosion in e-commerce has meant that many businesses pivoted into it. Not doing so would be akin to giving up the potential growth. Now, it may be time for companies to relook their initial hires.&nbsp;<\/p>\n\n\n\n<p>With technology constantly evolving, and potentially more companies jumping on the AI bandwagon now, there may be greater \u201cchurn\u201d in the economy \u2013 as DPM and Finance Minister Lawrence Wong mentioned in his&nbsp;<a href=\"https:\/\/www.mof.gov.sg\/singaporebudget\/budget-2024\/budget-statement\" target=\"_blank\" rel=\"noreferrer noopener\">Singapore Budget 2024 speech<\/a>.<\/p>\n\n\n\n<p>At the same time, AI and e-commerce are trends that are supposed to eventually lead to fewer headcount \u2013 and not more. Once the initial gains have been made, the sensible thing may be to stay lean.&nbsp;<\/p>\n\n\n\n<p><strong><em>Read Also:&nbsp;<a href=\"https:\/\/dollarsandsense.sg\/business\/business-need-know-singapore-budget-2024\/\">10 Things Businesses Need To Know About Singapore\u2019s Budget 2024<\/a><\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"More than twice the number of workers were retrenched in 2023.\n","protected":false},"author":10,"featured_media":11947,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[364],"tags":[1092,1597,226,636],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v16.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Singapore Employees Need To Be Ready For Retrenchment In 2024 | DollarsAndSense Business<\/title>\n<meta name=\"description\" content=\"Retrenchments more than doubled in 2023 - the biggest companies led the way, while technology trends may increase worker turnover overall.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dollarsandsense.sg\/business\/why-singapore-employees-need-to-be-ready-for-retrenchment-in-2024\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Singapore Employees Need To Be Ready For Retrenchment In 2024 | DollarsAndSense Business\" \/>\n<meta property=\"og:description\" content=\"Retrenchments more than doubled in 2023 - 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