SINGAPORE: Home-grown electronics company Creative Technology has laid off around 40 employees, representing approximately 14% of its workforce, as part of a restructuring exercise.
The move comes amid a wave of job cuts in the tech industry, both in Singapore and globally.
Confirming the layoffs, a company spokesperson told state media The Straits Times, “Creative Technology has undertaken a decision to restructure parts of its business to adapt to the evolving market conditions. As part of this transformation, it had to undergo a staff retrenchment exercise.”
The spokesperson did not disclose the exact number of affected employees or whether all of them were based in Singapore.
The firm’s corporate website states that Creative currently employs more than 280 people worldwide, a fraction of its workforce during its peak in the 2000s.
Several departments, including sales and marketing, were impacted by the restructuring.
“This decision was not taken lightly as our employees have been the heart of our company, and we deeply appreciate the hard work, dedication, and passion they have brought to our organisation,” the spokesperson added.
The firm assured that the retrenchment exercise adhered to the guidelines set by Singapore’s Ministry of Manpower. Affected employees would receive support during the transition.
Creative expressed confidence in its restructuring strategy, stating that it would help the company achieve long-term sustainability.
“We believe this restructuring will allow us to build a stronger, more sustainable future; one that ensures long-term success for our company, our employees, and the customers we serve,” the spokesperson said.
Financial losses amid industry challenges
Creative’s decision to downsize follows financial challenges.
For the first six months of its fiscal year ending 31 December 2024, the company reported a net loss of US$6.1 million (S$8.1 million), widening from US$4.1 million in the same period the previous year.
This was despite an 18% increase in net sales to US$37.4 million, up from US$31.8 million, driven by demand for new audio products, including the Super X-Fi earbuds and headphones.
The company had previously warned of uncertainties caused by import tariffs introduced by the Trump administration in the US.
It also cited concerns over retaliatory measures from affected countries, which could raise inflationary pressures and dampen consumer demand.
Tech layoffs across Singapore
Creative’s restructuring follows a string of layoffs within the tech industry in Singapore.
On 20 February, social media giant TikTok let go of several employees from its Trust and Safety unit in its Singapore office.
At least 12 TikTok staff lost their jobs with immediate effect.
TikTok stated in an email that the decision came “after months of careful consideration” and was aimed at improving operational efficiency and aligning the company’s workforce with its business needs.
Similarly, Meta reduced its workforce in Singapore in mid-February.
The layoffs were part of what the company termed “performance terminations.”
Globally, Meta’s latest round of job cuts affected approximately 3,600 employees, or 5% of its total headcount.
Leadership transition at Creative
In addition to restructuring efforts, Creative is searching for a new chief executive officer.
In a 28 February filing with the Singapore Exchange, the company announced a global search for a “dynamic and visionary” leader to replace Song Siow Hui, who retired in February after more than 30 years with the company.
Executive chairman Tan Jok Tin is serving as interim CEO.
Song had taken over as CEO following the sudden passing of Sim Wong Hoo in January 2023.
Sim, who founded Creative in 1981, was one of Singapore’s most influential technology entrepreneurs.
A legacy of innovation
Under Sim’s leadership, Creative became a global player in the tech industry.
The company gained international recognition in 1989 with the launch of its Sound Blaster card, which transformed personal computer audio and dominated the market throughout the 1990s. More than 400 million units were sold worldwide.
Creative became the first Singapore company to list shares on the Nasdaq in 1992. It was also a pioneer in digital music, launching the Nomad MP3 player in 1999—two years before Apple introduced the iPod.
The company took legal action against Apple in 2006 for patent infringements related to portable music players and secured a US$100 million settlement.
Despite these early successes, Creative struggled to maintain its competitive edge in the rapidly evolving consumer electronics market. Apple’s iPod and other emerging technologies eventually eclipsed Creative’s music players.
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