SINGAPORE – Singapore logistics company Ninja Van Group has laid off about 10 per cent of its tech team, a move which the National Trades Union Congress said it was “dismayed” by, as the retrenchment was “just before May Day”.
Responding to queries from The Straits Times, a spokesperson said on April 30: “Cost optimisation has always been an ongoing lever to ensure Ninja Van Group’s sustainable growth.
“In line with the group’s direction, our tech department has been actively implementing cost-control measures, including infrastructural reorganisation and outsourcing.”
The spokesperson said following a recent cost evaluation, the company decided that “less than 10 per cent of the region’s tech team is no longer required”.
Ninja Van did not reply to queries on the number of workers affected, but ST understands that 21 people were laid off, amounting to about 10 per cent of the entire tech team in the region, or 20 per cent of the tech team based in Singapore.
The spokesperson said the affected employees received a reasonable severance package. As part of the package, they are given one month of severance pay per full year of employment. They are also provided with job placement support.
The spokesperson added that the affected employees are kept in the company chat and given office access till the end of the week to facilitate proper farewell.
They also have garden leave until their official last day on May 31. Their medical insurance and mental health support benefits have been extended to June 30.
For those with unvested share options, their deadline for exercising vested options has been extended from 30 days to a year.
In an e-mail to a Ninja Van employee seen by ST, the company said on April 29 that layoffs are “an absolute last resort” and that it has done all it can to cut costs across the organisation, but it was not enough.
The e-mail added that it is not about cutting the size and capability of the tech team, but optimising the cost of it. It also noted that tech is critical in driving the company’s success and that the firm remains upbeat on the long-term outlook.
The logistics company is the latest firm here to lay off staff. Digital news publication Yahoo is also reportedly letting go of its editorial and social media teams in Singapore.
In a statement on the evening of April 30, NTUC said it is “dismayed” at Yahoo and Ninja Van for having initiated retrenchment exercises just before May Day, “a day meant to celebrate the contributions of workers towards Singapore’s economy”.
“Both companies are not unionised,” it said. “We understand that companies do need to undergo restructuring exercises from time to time, but they should be considerate about the timing of such exercises and avoid doing exercises during such periods.”
The affiliated unions – the Creative Media and Publishing Union and Supply Chain Employees’ Union Singapore – will be reaching out to general branch members to provide support for workers who may be affected, it added.
“In the event of retrenchment, companies must ensure openness, transparency and consultation with unions and workers,” NTUC said, adding that firms must also observe guiding principles outlined in its Fair Retrenchment Framework and the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
