SINGAPORE: Food and beverage company Yeo Hiap Seng (Yeo’s) is set to retrench 25 employees, in what is the company’s third round of job cuts since 2022.
In December 2024, Yeo’s cut 25 jobs after Swedish oat milk producer Oatly shut its Singapore plant. Those workers had been hired specifically for Oatly-related production. In 2022, the company also retrenched 32 employees, citing changing consumer behaviour, retail conditions and rising cost pressures.
The company announced on Tuesday (March 31) that the latest layoffs come as it consolidates can manufacturing operations in Johor and Selangor, as part of a broader effort to streamline operations, improve efficiency and better utilise manufacturing capacity across its regional network.
All affected roles are tied to can manufacturing. Following the retrenchment, the company will have 245 employees across its Singapore operations.
Despite the changes, Yeo’s said its Senoko site will remain its headquarters and continue functioning as a cross-border logistics hub, while also supporting smaller-scale manufacturing activities. The facility will also handle innovation work, commercial initiatives and regional coordination.
The company said it is committed to supporting affected staff through job placement assistance, career guidance and counselling. Where possible, employees will also be considered for available roles in Malaysia.
Yeo’s, which is unionised under the Food, Drinks and Allied Workers Union (FDAWU), said it had informed the union in advance of the consolidation, with the Ministry of Manpower noting that this took place in early 2025.
The firm added that it worked closely with the union to ensure retrenchment terms and transition support appropriately recognised employees’ contributions. Affected workers will receive benefits aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, with payouts based on salary and years of service.
FDAWU general secretary Sankaradass S Chami told CNA the union had engaged the company early to secure fair outcomes for workers. Union representatives were present during a March 31 briefing session with affected employees to ensure clear communication and to address concerns.
He added that the union is continuing to support workers in their transition, including through career planning, job matching and skills upgrading initiatives. This includes linking them to resources under the National Trades Union Congress, such as the Employment and Employability Institute (e2i), which is providing on-site assistance, career advisory services and information on job opportunities.
The retrenchment comes amid broader shifts in Yeo’s business performance and regional revenue mix.
The SGX-listed company reported a net profit of S$21.1 million for the financial year ending December 31, 2025, up from S$6.9 million the previous year. However, both group revenue and core food and beverage revenue declined, which the company attributed to weaker consumer spending and intensifying competition in key markets.
Over the longer term, Yeo’s revenues have been on a downward trend, falling from S$443 million in 2015 to S$364 million in 2019 and S$328 million in 2024. Profitability has also weakened significantly, from S$40 million in 2015 to S$6 million in 2024.
Singapore’s contribution to overall revenue has shrunk over time. In 2015, the domestic market accounted for roughly one-third of total revenue at S$131 million. By 2024, this had fallen to S$72.9 million, representing about 20 per cent of the group’s revenue.
In contrast, Malaysia and Brunei have grown in importance. Revenue from these markets increased from S$132 million in 2020 to S$162 million in 2024, now making up about half of the company’s total revenue.
This article (Yeo’s to cut 25 jobs in Singapore in third round of layoffs since 2022) first appeared on The Independent Singapore News.
