More retrenchments in Singapore’s tech sector, with 1,270 local workers affected since July

SINGAPORE: There has been an increase in the number of retrenchments in the tech sector, with 1,270 local workers laid off from July to mid-November, Manpower Minister Tan See Leng told Parliament on Monday (Nov 28).

Among them, around eight in 10 were in non-tech roles such as sales, marketing and corporate functions.

Around seven in 10 were aged 35 and below, said Dr Tan, adding that this is “consistent” with the low median age of residents employed in the information and communications (I&C) sector.

The minister was responding to questions from several Members of Parliament about how a spate of tech layoffs worldwide has affected workers in Singapore, and the employment support being offered to them.

Twitter, Facebook parent Meta and Shopee are among the tech companies that have laid off workers in Singapore this year.

Noting that the tech sector generally refers to the I&C sector, Dr Tan said that the sector employed 136,100 residents as of June.

He added that the figure has increased steadily over the past five years at an average of 8,100 resident workers a year from June 2017.

“In comparison, retrenchment numbers over the past five years have been relatively low, at an average of 790 resident workers per year,” said Dr Tan.

“Based on available labour market data, 260 residents were retrenched in the first half of this year, as compared to the increase of 7,000 residents employed in the sector.”

Dr Tan said that recent retrenchment notices received by the Ministry of Manpower (MOM) indicated an “uptick” in the retrenchment of local or resident workers in the tech sector.

Employers with businesses registered in Singapore and at least 10 employees are legally required to notify MOM of any retrenchment within five working days of informing the affected employees.