Electrolux To Shut Down Singapore Regional Headquarters, Affecting Over 100 Employees
Swedish firm Electrolux will shut down its regional headquarters in Singapore, in a move reportedly affecting at least 100 employees.
According to The Straits Times (ST), the company will retrench most affected employees but will offer relocation packages to some.
The closure will reportedly happen by May, although Electrolux did not confirm the deadline.
Electrolux will shut down regional headquarters in Singapore
Citing Electrolux employees, ST reports that the impending closure of Electrolux’s regional office at Rochester Park will happen by May, affecting 100 to 200 employees.
While most are set to be retrenched, a “handful” have been offered relocation packages.
Employees estimated that less than 20% received the offer of relocation packages.
Source: Reuters
Responding to queries by ST, Electrolux’s director of communication for Asia-Pacific, Middle East and Africa transformation Samar Refai confirmed the closure. However, she did not state whether the office would shut down by May.
In addition, she said that employees knew of the upcoming closure via an internal announcement last December.
She also confirmed that the commercial leadership team for Asia-Pacific (APAC), Middle East and Africa (MEA) will relocate to Bangkok.
In light of the closure and layoff, Ms Refai said that the company will offer the “maximum level of support” during the transition period.
Electrolux’s Braddell office will stay open
Moving forward, Ms Refai shared that Australia and Thailand will serve as “key hubs” for Electrolux’s operations in the region.
“Having the regional capabilities and competencies within these hubs ensures proximity to our customers, consumers, manufacturing sites, research and development, and innovation centres,” she noted.
Meanwhile, Electrolux’s other office at Braddell Road handling product servicing and sales in Singapore will remain open.
Source: Google Maps
Ms Refai said the closure of the regional headquarters will not affect operational business and trade relations in Electrolux’s markets in the region. This includes the office at Braddell.
100 to 200 employees affected by move
Speaking to ST, sources said that there were 100 to 200 employees in the regional headquarters, working for departments like marketing, finance, and product design.
On 17 Jan, staff had to attend a physical town hall meeting at the Rochester Park office. No one was allowed to attend virtually or record the announcement.
They were then informed that the closure would take place by May and that the human resources department would discuss their individual arrangements in one-on-one meetings over the next few weeks.
The retrenchment package, revealed at the meeting, will include three weeks of pay for every year of employment, capped at 30 weeks.
It also included the following, according to sources:
- One month’s pay for employees who worked for three years and under
- Two months’ pay for employees who worked for over three to six years
- Three months’ pay for those who worked for over six to 10 years
- Four months’ pay for those who worked for more than a decade
- One to three months’ notice period depending on contracts, with the option to serve garden leave or have pay in lieu of notice
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Featured image adapted from Reuters.
