A Singapore-based unit of global logistics giant DHL Group has carried out a retrenchment exercise, citing organisational restructuring aimed at ensuring long-term sustainability.
The affected entity, DHL Global Forwarding Singapore, confirmed the layoffs following online discussions that surfaced earlier in the year. However, the company has not disclosed the specific roles or departments impacted.
In a statement, a company spokesperson said workforce decisions were guided by business needs and merit, adding that employees would be treated fairly and in accordance with local employment regulations.
Union Confirms Job Losses And Support Measures
The Singapore Manual and Mercantile Workers’ Union confirmed that three employees were retrenched in the latest exercise conducted at the end of March.
As the company is unionised, the union said it had been informed ahead of the restructuring and worked closely with management to ensure fair treatment for affected staff. This includes securing severance packages aligned with the existing collective agreement.
Under the agreement, retrenched employees are entitled to either one month’s notice or salary in lieu. Those with at least two years of service will receive additional retrenchment benefits based on their tenure.
Compensation Framework And Retrenchment Benefits
Employees affected by the layoffs may receive compensation equivalent to one month of their last drawn basic salary for each year of service. This benefit is capped at a maximum of 25 months’ salary or up to what the employee would have earned until retirement age, whichever is lower.
Such structured compensation frameworks are common in unionised sectors in Singapore, offering a degree of financial security for workers impacted by corporate restructuring.
The case also reflects broader employment trends, where companies adjust workforce size in response to shifting economic conditions, particularly in sectors like logistics and supply chain management.
Job Openings Still Available Despite Layoffs
Interestingly, even as layoffs were carried out, job listings indicate that the company continues to hire in Singapore. Open roles reportedly include positions in business development and air freight operations.
This suggests that the restructuring may involve reallocating resources or shifting focus towards specific business functions, rather than a complete reduction in operations.
According to available data, the Singapore unit employs around 360 staff, while the global organisation has a workforce of approximately 584,000 employees across more than 220 countries.
MOM Notification Requirements And Industry Impact
The Ministry of Manpower requires companies with at least 10 employees to notify authorities within five days of any retrenchment exercise, regardless of the number of workers affected.
While the scale of this retrenchment appears limited, it comes amid ongoing discussions about job security, workforce transformation, and the future of employment in Singapore’s logistics sector.
As businesses continue to adapt to global economic pressures, such restructuring exercises are expected to remain part of the corporate landscape, with unions and regulators playing a key role in safeguarding worker interests.