Yeo Hiap Seng lays off 25 employees as Oatly shuts its Singapore plant
YEO Hiap Seng will be laying off 25 employees as a result of Oatly’s decision to cease its manufacturing operations in Singapore.
On Thursday (Dec 19), the beverage manufacturer said a total of 41 employees were directly involved in Oatly’s manufacturing operations.
It noted that it has placed 16 employees in other roles within the company. However, the remaining 25 employees will be retrenched and will receive severance packages based on their salary and years of service.
“The affected employees were specifically hired to support Oatly’s production at Yeo’s Senoko plant, and the layoff is a direct result of Oatly’s evaluation of its supply network,” it said.
Yeo’s chief executive Ong Yuh Hwang said: “We deeply regret having to make this decision. Our priority is to support our colleagues and to reduce stress and anxiety for them during this period.
“To this end, we will work closely with the union to ensure affected employees receive all the necessary resources during this challenging time.”
Shares of Yeo Hiap Seng closed flat at S$0.58 on Wednesday.
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Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Vanity Fair Fashion.
