Singapore ― After 49 years of operations in Singapore, electronics giant Panasonic is shutting down its refrigeration unit, with 700 employees to be retrenched from their jobs.
“Given the challenging global business outlook and following Panasonic’s long-term business strategic review of the refrigeration compressor business portfolio, we will cease the manufacturing of refrigeration compressors in Singapore by the end of September 2022,” said Panasonic in a press release on Thursday (Sept 23).
Panasonic Appliances Refrigeration Devices Singapore has established its reputation as one of the major refrigeration compressor manufacturers globally in the past 49 years of operation in Singapore, the release noted.
It has manufactured energy-efficient inverter compressors for fridges, water coolers, and vending machines.
Affected by the review process are 700 employees who will be laid off.
The employees holding positions in production control and process engineering were notified of the retrenchment in four separate 45-minute sessions on Thursday.
It was reported that about half of the affected workers are Singaporean, while another 13 per cent are permanent residents.
The retrenched employees will leave the company in three batches. The first batch will serve their last working day on Mar 31, 2022, while the remaining two will continue working until Sept 30.
“We are working very closely with the relevant authorities, government agencies, and United Workers of Electronics & Electrical Industries to ensure all affected employees are well-supported during this transition, including assisting with job placements,” the company said.
Panasonic will consolidate its compressor manufacturing operations to existing facilities in Malaysia and China.
Meanwhile, its Research and Development unit will remain in Singapore and will continue to serve as global headquarters of the refrigeration compressor business, said Panasonic.
It added that Singapore remains a regional and important hub for Panasonic and will continue to have more than 1,400 employees across various business domains.
“We will continue to invest in Singapore to support our growth strategies in the high-value supply chain and continue contributing to the communities in the Asia Pacific and beyond,” said Panasonic. /TISG
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