Yeo’s to lay off 25 employees as Oatly ends Singapore operations

The employees will receive severance packages based on their salary and years of service.

Yeo Hiap Seng (Yeo’s) announced that 25 of its 41 employees directly involved in Oatly’s manufacturing operation will be laid off due to Oatly’s decision to cease its operations in Singapore.

Yeo’s has also made an effort to reassign staff and has successfully placed 16 employees in other roles within Yeo’s.

However, the remaining 25 employees will be retrenched and 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 stemmed from Oatly’s evaluation of its supply network.

Yeo’s works with the Food, Drinks, and Allied Workers Union (FDAWU) throughout this process.

The company informed FDAWU upon the announcement and is in discussions with the union to ensure adherence to Tripartite Guidelines and that fair compensation is provided to affected employees in line with the company and union’s collective agreement.

FDAWU and Yeo’s will also work with NTUC’s e2i (Employment and Employability Institute) to extend job-matching support and career guidance to these employees.

“We deeply regret having to make this decision,” said Ong Yuh Hwang, CEO of Yeo’s. “To this end, we will work closely with the union to ensure affected employees receive all the necessary resources during this challenging time.”

Yeo's has partnered with Oatly in Singapore since 2019. Whilst manufacturing operations will cease, the group will remain committed to supporting Oatly’s distribution in Singapore and Malaysia.