Electronics giant Panasonic is shutting down its refrigeration compressor manufacturing operations in Singapore, resulting in the layoffs of some 700 workers.

However, its global headquarters for the refrigeration compressor business and research and development activities will remain here, it said in a statement.

Singapore remains a regional and important hub for the conglomerate, with its group of firms continuing to have more than 1,400 employees across various business segments here.

The layoffs represent about one-third of its total workforce here, where the Japanese company's Asia-Pacific headquarters is located.

The decision comes amid the challenging global business outlook and following the company's strategic review of its refrigeration compressor business portfolio, Panasonic said yesterday.

Affected employees, who work in roles such as production control and process engineering, were notified in four separate 45-minute sessions yesterday.

Around half of these workers are Singaporean, while another 13 per cent are permanent residents.

The last working day for the first batch of retrenched staff will be on March 31 next year, while the last day for the second batch of affected workers will be on Sept 30 next year.

Panasonic said it will consolidate the compressor manufacturing operations in its existing facilities in Malaysia and China.

Panasonic Appliances Refrigeration Devices Singapore (PAPRDSG) was set up in 1972, and currently produces compressors for household fridges and freezers at its facilities in Bedok South Road and Gul Road.

The firm said that it is working closely with government agencies, the relevant authorities and the United Workers of Electronics and Electrical Industries (UWEEI) trade union to ensure all affected staff are well supported during this period, including assisting with job placements.

Mr Khoo Chew Thong, adviser for R&D and quality administration at PAPRDSG, told The Straits Times that about 60 per cent of staff being laid off are aged 50 or older, and another 30 per cent are between 30 and 50 years old.

One-to-one sessions will be held with affected staff in the coming weeks, he added.

PAPRDSG will also work with other companies in the Panasonic group here to explore possible re-employment, Mr Khoo said.

"The re-employment will depend on the job availability within the business divisions and job fit," he noted, adding that the UWEEI was notified of the job cuts on Tuesday.

PAPRDSG has around 760 employees, of whom 12 per cent are based at the Gul Road plant.

Several union representatives were seen at its facility in Bedok South Road when ST visited yesterday morning.

A few employees seen leaving the compound declined to comment when approached, saying that they were instructed not to speak to the media.

Around 40 union leaders and industrial relations officers were at the two plants to speak with the affected staff.

The UWEEI said in a separate statement that it has been working closely with the National Trades Union Congress' Employment and Employability Institute (e2i) and the Economic Development Board to provide job placement assistance to retrenched staff.

The union's priority is to continue working with the company to ensure that affected employees get the necessary help, it added, noting that PAPRDSG is committed to paying employees the retrenchment benefits stipulated in the collective agreement, which are higher than industry norms.

In unionised firms where the amount of retrenchment benefit is stated in the collective agreement, the norm is one month's salary for each year of service.

This is higher than industry norms of between two weeks' and one month's salary per year of service, depending on the firm's financial position and industry.

"The union is also working with other unionised companies that may have vacancies in the same or adjacent sectors," it said.

The Taskforce for Responsible Retrenchment and Employment Facilitation said that e2i and Workforce Singapore will offer employment assistance such as career coaching and job matching to the workers.

Panasonic stressed that Singapore remains a regional and important hub for the company, adding: "We will continue to invest in Singapore to support our growth strategies in the high-value supply chain and continue contributing to the communities in the Asia-Pacific and beyond."

The remaining staff at PAPRDSG who work in roles such as R&D, sales and marketing, and accounting will not be affected by the closure of manufacturing operations.

A decision has yet to be made on the space vacated by the manufacturing operations, although part of it will be used for headquarter activities, said Mr Khoo.