25 more jobs cut by Yeo Hiap Seng as Oatly shuts Singapore factory

SINGAPORE: Another 25 individuals will lose their jobs due to Oatly’s decision to close the factory in Singapore it co-operated with beverage giant Yeo Hiap Seng.

The factory was developed by both Oatly and Yeo Hiap Seng with an investment of about $30 million. It is being shuttered just three years after it was opened in 2021.

Initially, Oatly announced that the closure would affect 34 employees. However, Yeo Hiap Seng has since revealed that an additional 25 workers employed specifically for Oatly’s production will also be laid off. These layoffs come after Yeo Hiap Seng reassessed its workforce, transferring 16 of the 41 production staff to other roles.

Yeo Hiap Seng confirmed in a press release that the affected employees will receive severance packages based on their salary and length of service. The layoffs were attributed to Oatly’s evaluation of its supply chain and operational needs.

The company assured that the Food and Beverage and Allied Industry Workers’ Union was notified in advance and that discussions are ongoing to ensure compliance with Singapore’s tripartite guidelines. Yeo Hiap Seng emphasized its commitment to fair compensation in line with its collective agreement with the union.

Furthermore, Yeo Hiap Seng has partnered with the National Trades Union Congress’ Employment and Employability Institute to provide support for the retrenched workers. This includes job matching services and career guidance to help them transition to new opportunities.