Singapore can't afford to let sudden layoffs become the norm

Redundancies are inevitable in any industry, but can we do more to reduce the 'shock' factor that we're seeing in the tech sector?

- Ng Weiyi

Tech layoffs are surging worldwide. More than 100,000 workers have already lost their jobs so far in 2024.

One of the latest abrupt layoffs in Singapore was at tech company Dyson, after it had axed 1,000 jobs in Britain in July. At that time, the company had said that the Singapore office would not be directly impacted by the job cuts in Britain.

Dyson subsequently announced sudden layoffs of an undisclosed number of workers in Singapore on Oct 1, just three months after announcing dividends of US$700 million (S$936 million).

Several troubling trends have emerged. One is that the job cuts are occurring despite increased profits. Worse, not only are layoffs more frequent and unpredictable, but tech companies are also increasingly reticent about impending dismissals, leaving employees blind-sided and vulnerable.

Commonly, layoffs are a response to poor company performance. For instance, tech giant Intel Corp cut hundreds of jobs in the United States after losing market share to competitors, while Cisco Systems underwent two rounds of layoffs as part of cost management efforts amid declining demand.

Another instance is mismatched post-pandemic assumptions by human resource management during the Covid-19's tech boom when interest rates were zero.

Take e-commerce platform Shopee's layoff spree in September 2022, where it let go over 7,000 employees - just nine months after it launched bouts of hiring fuelled by record investments. This and a wave of post-Covid-19 technology job cuts shows the fallout from unrealistic growth assumptions.

These assumptions are now hitting a harder reality with rising interest rates and a tight venture funding environment.