Yeo Hiap Seng (Yeo’s) announced on Thursday (19 Dec) that 25 employees will be retrenched following Oatly’s decision to shut down its Singapore production facility.
The closure, confirmed by Oatly on Wednesday, will impact a total of 59 workers, including 34 Oatly employees.
The affected Yeo’s staff were specifically hired to support Oatly’s production as part of their collaboration, which began in 2019.
According to a report by CNA, Yeo’s said it has successfully reassigned 16 employees to other roles within the company. However, the remaining 25 employees will be retrenched, receiving severance packages based on their salary and years of service.
Commitment to fair compensation and support
Yeo’s stated it is working closely with the Food, Drinks and Allied Workers Union (FDAWU) to ensure compliance with tripartite guidelines on retrenchment.
Additionally, the company has committed to offering job-matching services and career guidance to the affected employees to aid their transition.
“Yeo’s has made every effort to reassign as many as possible,” the company said.
“Unfortunately, the remaining 25 employees will be retrenched and will receive severance packages based on their salary and years of service.”
Oatly’s closure
Oatly opened its S$30 million (US$22 million) plant in Singapore in October 2021, marking its first manufacturing venture outside Europe and North America. The facility was initially celebrated as a milestone for Singapore’s food manufacturing sector, with a projected annual output of 60 million litres of oat milk.
On 18 December, Oatly announced the plant’s closure as part of an asset-light strategy aimed at improving its cost structure and reducing future capital expenditures.
The Swedish company cited plans to shift production for its Asia-Pacific markets to existing facilities in Europe.
