SINGAPORE: Singaporeans will face retrenchment at least once in their careers as AI fundamentally restructures job hiring, says HR consultant Dr Nik Chong, author of “Still Relevant in the Age of AI?”

Dr Chong said Singaporeans are gradually accepting that, at least once in their careers, they will definitely be retrenched. It’s only a matter of when, how long it will last and how fast they bounce back. If they stay in the market long enough, they will get retrenched.

The idea that retrenchment will become a normal part of working life triggered strong emotional reactions among Singaporeans this week after the HR consultant and author shared the reality of the future of work. His comments, posted by The Financial Coconut on Instagram, also ignited a fiery debate over whether artificial intelligence (AI) will primarily support workers or begin replacing them.

Dr Chong’s remark was part of a discussion on how AI may transform career paths for professionals, managers, and technicians (PMETs), especially mid-career workers. The strongest reactions online came from Singaporeans pushing back on one point that experience and leadership can be replicated so easily.

“Managers and PMETs are prime [retrenchment] targets for cost reduction…”

Dr Chong argued, according to the post, that PMETs in their own right could become more exposed during cost-cutting exercises.

He said: “Managers and PMETs—especially those in their 40s and 50s—should be very concerned about retrenchment. They are prime targets for cost reduction. Why pay S$6,000 a month when a junior executive, equipped with AI, can replicate much of a manager’s work—analysis, recommendations, even decision support? Your experience and skills may, of course, be better, but it won’t stop some companies from making the switch.”

That statement became one of the most discussed parts of the post. Several commenters challenged the assumption that AI, combined with junior staff, can replace experienced managers.

One person commented that good managers do more than produce outcomes. They coordinate moving parts, take accountability when decisions fail and lead teams through uncertainty. Another added that AI tools still depend heavily on people with work experience and deep business understanding to get useful results.

Others, however, disagreed. One commenter argued that resistance to AI resembles earlier reactions to robotics and automation processes. The commenter explained that workers who adapt earlier may place themselves in a stronger position than those waiting for old structures to return.

Another took a more practical view and said the best defence against job displacement is ongoing skills development and staying employable.

“Many companies aren’t retrenching because it’s a cost-cutting move, not a survival one…”

Dr Chong also suggested that retrenchment is no longer tied only to weak business performance. “Many companies aren’t retrenching because they’re failing—they’re doing it because they can. Profits may be better than ever, but with AI, fewer people are needed to do the same work. It’s a cost-cutting move, not a survival one.”

He added: “I think the truth is that there will be fewer jobs created, and I believe it probably will get worse towards the end of the year as more companies pivot to AI solutions.”

Dr Chong also pointed to people he knows who have remained unemployed for years and said long-term unemployment is increasing.

Concerns such as this land at a sensitive moment in Singapore’s workforce conversation, where AI adoption is placed alongside productivity and new opportunities, but increasingly also alongside job security.

Work experience does matter, but so does learning new tools

Predictions about AI replacing jobs tend to split people into two camps: those expecting disruption and those defending human value. Reality usually sits somewhere in the middle.

Technology changes jobs faster than titles disappear. Work experience does matter, but so does learning new tools. The safer move is probably not assuming either that AI will replace everyone or that work experience alone guarantees protection.

This article (‘Singaporeans will definitely get retrenched at least once’ — HR consultant and author of ‘Still Relevant in the Age of AI?’ says, ‘It’s only a matter of when’) first appeared on The Independent Singapore News.

SINGAPORE: Companies cannot avoid calling a retrenchment a retrenchment simply by asking workers to apply for jobs overseas, the Ministry of Manpower (MOM) and National Trades Union Congress (NTUC) stated, following concerns that some employers are presenting job cuts as fresh career opportunities during restructuring exercises.

According to Channel NewsAsia (CNA), both organisations said that if a role in Singapore becomes redundant, the situation is still considered a retrenchment, regardless of whether the employee is invited to apply for a position elsewhere in the company.

The issue came into focus after Swedish fashion retailer H&M announced plans to move its Southeast Asia headquarters from Singapore to Malaysia. Employees across East Asia were reportedly asked to apply for 178 positions across the region, many of which had shifted out of Singapore. Workers who fail to secure a role could leave under what the company described as mutual separation arrangements.

When retrenchment becomes a “new job opportunity”

NTUC said it is concerned about cases where workers are asked to reapply for local or overseas positions while their existing Singapore roles are being eliminated.

The union stated that if a Singapore-based position is eliminated due to redundancy, the worker’s employment relationship with the local entity ends. In such cases, the exercise should be recognised as a retrenchment rather than a new employment opportunity.

MOM said a retrenchment occurs when a role no longer exists in Singapore, including situations where it has been relocated overseas, even if the employee applies for another role within the organisation.

The clarification is important because retrenchment carries expectations around notification, compensation and support that may not be as obvious under alternative labels.

Some companies avoid the word “retrenchment” to reduce negative perceptions

Human resources professionals who were interviewed said some companies may prefer terms such as restructuring, calibration or mutual separation because they sound less severe.

Ms Archana Srinivasan, founder and director of Alchemy People Partners, said some restructuring exercises are genuine responses to regional expansion, automation or cost pressures. Others, however, may package workforce reductions in softer language to reduce negative perceptions.

Mr Ian Liew, an HR practitioner with more than a decade of experience, however, said that changing the label does little to alter the reality for affected workers. He said the real test lies in whether employees receive fair redeployment opportunities, adequate support and proper compensation.

The differing opinions show companies across industries are under pressure to cut costs and reorganise operations, particularly as technology and regionalisation reshape business structures.

The grey area around “mutual separation”

One of the more contentious issues involves mutual separation agreements. These agreements are typically presented as voluntary exits. However, lawyers and HR experts stated that they can create uncertainty when workers are leaving because their jobs have effectively disappeared.

Mr Terence Seah, partner at Virtus Law, said employers cannot escape their contractual obligations simply by avoiding the word “retrenchment”. The key question remains what the employment contract requires and what actually happened to the role.

Ms Srinivasan noted that some employers may argue that no retrenchment occurred if workers voluntarily sign separation agreements. This creates a legal and practical grey area, even when the underlying reason for departure is job redundancy.

She advised employees to seek professional advice before signing such agreements and stressed that workers cannot be forced into them.

Workers may lose out financially

The distinctions used can have real financial consequences for retrenched employees. Under tripartite guidelines, retrenchment benefits are commonly recommended at between two weeks and one month’s salary for every year of service, although these guidelines are not legally binding.

Mr Liew pointed out another difference. Retrenchment payments made to compensate for job loss are generally not taxable, while ex gratia payments under mutual separation agreements are typically treated as taxable income by the Inland Revenue Authority of Singapore (IRAS). Meaning, workers could receive less after tax, even if the headline payout appears similar.

Other retrenchment labels: Restructuring, calibration, redeployment or mutual separation

Beyond legal obligations, experts who were interviewed repeatedly returned to one theme: transparency.

Singapore Human Resources Institute Chief Executive Officer Alvin Aloysius Goh said employees feel uncertain when alternative roles are significantly different or not practical for their circumstances. He said employers should handle redeployment and separation discussions fairly and openly.

HR consultant Christine Chan added that workers can feel stranded when companies offer relocated jobs without providing enough information about relocation packages or employment terms. The lack of certainty creates more stress than the restructuring itself.

For employees, the lesson is to look beyond the label. Whether a company calls it restructuring, calibration, redeployment or mutual separation, the key issue is whether the original Singapore role still exists.

MOM, NTUC, and labour experts advise employers that workers are more likely to accept difficult decisions when companies explain them properly, provide meaningful support, and call things as they are.

Read related: Singapore retrenchments 2026: Amazon, Tiger Beer, Yeo’s, and more firms cut jobs amid rising energy costs and weak demand

This article (MOM/NTUC: Employers cannot disguise retrenchments as ‘new opportunities’ by asking Singapore workers to reapply for jobs overseas) first appeared on The Independent Singapore News.

SINGAPORE: Shopee has cut jobs in Singapore, with software engineers among those affected, as the e-commerce giant continues a major dive into artificial intelligence (AI).

The company confirmed the workforce adjustment on June 10, saying it regularly reviews staffing needs and may make changes based on business and operational priorities. The decision was made as Shopee’s parent company, Sea Limited, accelerates investment in AI projects across its businesses.

Employees at Shopee’s Singapore headquarters were informed of the layoffs on Monday. The company was also cutting hundreds of developer roles globally, representing about 8 per cent of its developer workforce, Channel NewsAsia (CNA) reported, citing Bloomberg.

Software engineers among those affected

Two Shopee software engineers, on condition of anonymity, said they were among those retrenched. One of them said he first received a message through the company’s internal communication platform before being called into a meeting with human resources.

Affected staff were reportedly offered an “N+2” package, which provides one month’s salary for every year of service, plus an additional two months of pay. The total number of affected employees in Singapore is still unknown.

Another employee, whose role wasn’t impacted, said there was no company-wide town hall or email announcing the exercise. He was aware of at least 10 colleagues who lost their jobs, mostly from product and engineering teams.

The retrenchments are concerning because they involve software developers, a profession viewed as one of the safer bets in the digital economy.

Read related: ‘Complete nonsense’ — Jensen Huang rejects the need for global workers to fear AI-driven job losses, says more software engineers will be needed

As AI tools become more capable of writing code, testing software and automating routine development work, technology firms are increasingly reassessing how many engineers they need.

Union and task force step in

Sea Limited isn’t unionised in Singapore, but the company informed the Creative Media and Publishing Union (CMPU) before the retrenchment exercise.

The union said the advance notice allowed it to work with management to support affected employees and ensure compensation packages met expectations. Union representatives were also present during the exercise to assist.

The Taskforce for Responsible Retrenchment and Employment Facilitation said Sea was working with CMPU to support affected employees whose final working days fall between late June and late August.

The task force added that Sea had committed to providing retrenchment benefits that align with Singapore’s tripartite guidelines on responsible retrenchment.

Read related: NTUC: Singapore is looking into ways to better support workers before job losses

AI becomes a bigger priority for the business

The layoffs come against the backdrop of Sea’s growing AI ambitions. Sea’s chief executive officer (CEO), Forrest Li, has previously described AI as a major growth opportunity for the company.

Mr Li told employees in 2025 that Sea could potentially reach a trillion-dollar market valuation if it made the right decisions around AI and doubled down on the technology.

Last month, Bloomberg reported that Sea had committed fresh funding to both internal and external AI initiatives as it looked for new growth opportunities beyond e-commerce.

In April, the company launched an Artificial Intelligence Centre of Excellence in Singapore with support from Digital Industry Singapore. At the launch, Mr Li described AI as a core capability that would strengthen product development, operations and long-term value creation.

Read related: ‘Singaporeans will definitely get retrenched at least once’ — HR consultant and author of ‘Still Relevant in the Age of AI?’ says, ‘It’s only a matter of when’

Workforce cut even when business profits rise despite higher spending

For the first quarter of 2026, the company reported net income of US$438.2 million (S$564.31 million), up 6.7 per cent from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 9.3 per cent to US$1 billion (S$1.28 billion).

At the same time, Sea’s spending climbed sharply. Operating expenses rose 43.4 per cent year-on-year to nearly US$2.6 billion (S$3.34 billion), while cost of revenue increased 51.7 per cent to US$4 billion (S$5.15 billion).

Read related: Singapore retrenchments 2026: Amazon, Tiger Beer, Yeo’s, and more firms cut jobs amid rising energy costs and weak demand

AI is taking over jobs at every level of the workforce

The latest cuts again show a change taking place across the technology sector. Companies are pouring money into AI while seeking ways to streamline teams and automate work previously handled by humans.

The development is another reminder that AI is taking over jobs at every level of the workforce. The subject is no longer whether AI will affect knowledge workers; it is increasingly about which tasks are still uniquely human and how workers can adapt as technology takes on a larger role.

Job cuts are never easy for those affected. Companies pursuing AI-driven growth should continue investing in retraining and skills development, helping employees move into new roles instead of leaving them behind.

Read related: Meta terminates 8,000 jobs globally, while Singapore staff receive their termination e-mails at 4 AM, as the company moves on with its new AI-focused teams

This article (Shopee cuts Singapore jobs as AI takes over their work; even local software engineers among hundreds of global developer roles are also affected) first appeared on The Independent Singapore News.

SINGAPORE: A young Singaporean woman expressed her anger online after her father suddenly lost his job despite spending years working hard and remaining loyal to his company.

On a Reddit forum called “r/SingaporeRaw,” the daughter said she found it rather unfair that her father was laid off after the company decided to relocate its production operations to Malaysia.

“My dad did everything society and this government tells you to do,” she wrote. “Worked hard for years, paid taxes, contributed to CPF, raised a family, and stayed loyal to his company. Yet all it takes is one decision to move jobs elsewhere, and suddenly our family’s future becomes uncertain.”

She also shared that her father had not been acting like himself in the weeks before the retrenchment.

According to her, he became “quieter, more distant” and would spend long periods staring at his phone after work.

“My mum kept asking if something was wrong, but he just brushed it off and said he was tired,” she said.

The truth finally came out a few days later when he broke down and admitted he had lost his job.

The daughter explained that her father is the sole breadwinner of the family, while her mother is disabled and unable to work. She and her sister are also still studying and are financially dependent on him.

She added, “People always say there’s financial assistance available. Maybe there is, but anyone who has actually needed it knows it doesn’t magically solve everything, like school fees, transport, groceries, utilities, and medical expenses. [They] don’t disappear overnight.”

Seeing her father quietly worrying over finances at the dining table has also caused her to reflect on whether ordinary Singaporean workers are truly protected in their own country.

She said, “Every election, we’re told Singaporeans will be protected and that good jobs will be created for locals. But when I look at my dad sitting at the dining table, wondering how he’s going to support the family and pay next month’s bills, I can’t help but wonder what that protection actually means.”

“Maybe there are economic reasons, or maybe companies have to do what’s best for business, or maybe my family is just unlucky; policies don’t work in favour of us. For families like mine, those explanations don’t make paying the bills any easier.”

“I would suggest you contact social workers.”

In the comments, one Singaporean Redditor remarked, “This is sadly the price of capitalism. With a mix of monopoly, it makes it worse.”

Hoping to be of some help, another user wrote, “I would suggest you contact social workers for assistance for your family. I am not familiar with schooling assistance, but for your mum’s disability, see if you can get HGC, which can be S$600/month.”

A third wrote, “Very sorry that this has happened to your family. I believe your father is already at an age where upskilling and other nonsense schemes by the govt won’t be easy or produce any results.”

A fourth added, “Guess it’s time for your family to take stock of any expenditure that is not necessary. And for you and your sister to get part-time jobs if possible.”

In other news, a fresh university graduate in Singapore has found themselves caught between practicality and ambition after receiving a job offer paying S$3,000 a month —a salary they admitted feels difficult to accept, yet equally difficult to walk away from.

Compared with recent graduate salary figures, which place median starting pay anywhere from S$3,840 for ‘Arts, Design and Media’ graduates to around S$5,500 for those in ‘Information and Digital Technologies,’ the offer struck them as rather low.

Read more: ‘If desperate, just take liao’ — Singaporeans weigh in after fresh grad receives S$3K job offer

This article (‘The company he worked for decided to move production to Malaysia’: Daughter upset after father’s layoff, says he ‘worked hard and stayed loyal’) first appeared on The Independent Singapore News.

SINGAPORE: Singaporeans already grappling with rising living costs and persistent inflationary pressures are voicing fresh anxieties over job security after new figures showed retrenchments have more than doubled in just three years.

Despite low unemployment and continued employment growth, the number of workers being retrenched has climbed sharply. Retrenchments rose from 6,440 in 2022 to 13,020 in 2024 before increasing further to 14,490 in 2025.

The trend has prompted concern among workers, particularly professionals, managers and executives (PMEs), as industries undergo restructuring, companies seek cost savings, and artificial intelligence begins reshaping workplaces.

The National Trades Union Congress (NTUC) said last week it has observed an increase in retrenchment cases linked to business restructuring and reported that more white-collar workers are turning to unions and trade associations for assistance after losing their jobs.

In 2025 alone, NTUC handled more than 3,900 retrenchment and termination-related cases involving PMEs, a 5% increase from the previous year. Some of the cases stemmed from companies relocating jobs overseas in response to cost pressures, NTUC assistant secretary-general and ruling party MP Patrick Tay told The Straits Times.

Revealing that some roles were being moved out of Singapore “even when local PMEs are experienced and capable,” he added, “We are also seeing businesses cite investments in AI as a factor for workforce restructuring. Some workers find themselves displaced because job roles are changing faster than they can adapt.”

The labour movement is particularly concerned about workers in professional services, finance, and the infocomm and technology sectors, which are viewed as among the industries most exposed to the impact of generative AI.

Sharing that many PMEs remain unaware they can join unions and seek representation from the labour movement during retrenchments, the MP told the national broadsheet about one case that NTUC helped mediate involving an IT employee.

The worker had served at a non-unionised company for 18 years before his employment was unexpectedly terminated with one month’s notice in February 2026.

After unsuccessfully attempting to negotiate a better exit package with his employer, the worker sought assistance from NTUC. The union’s PME department took up the case, with a representative writing to the company to highlight the employee’s long service record and request mediation.

The effort resulted in the company offering six months of ex gratia payment and an additional month’s bonus, amounting to a settlement of $47,600.

While the positive outcome of this case is being lauded as proof that unions work, some Singaporeans have opined that the case only serves to show that loyalty at workplaces have become a liability instead of an asset.

Facebook user Bobby Sim is among those holding this view. He wrote, in a post that has garnered more than 1,200 reactions, that the settlement only reflected the employer’s goodwill rather than any guaranteed protection.

“The $47,600 was ex gratia. That means ‘by favour.’ The company was not legally required to pay a single dollar of it,” he wrote, “NTUC did not force them. They wrote in, highlighted his record, and the company chose to do the right thing.”

Calling attention to the discretionary nature of such payouts, he added: “Key word: chose. A good employer on a good day. That is not a system. That is luck.”

Mr Sim also pointed out that businesses carrying out retrenchments are often facing financial challenges themselves, making generous payouts difficult or impossible.

“Most companies retrenching staff are not doing it from a position of strength. They are doing it because they are bleeding,” he wrote, “An SME running out of cash cannot write that cheque. A multinational offshoring your role to cut costs has every reason to say no. The situations most likely to get you retrenched are the same situations least likely to give you a payout.”

His post also resonated with workers concerned about whether loyalty to a single employer still carries value in today’s labour market.

“Imagine working at a company for 18 years. Every year you show up. Every year you deliver. Every year you get your performance review and hear ‘good job,’” he said, “18 years of loyalty. 18 years of being reliable. And the reward? A pat on the back, a small bump that barely keeps up with inflation, and then one day an email saying your role is no longer needed.”

Describing what he sees as a changing employment landscape, Mr Sim argued that long-serving employees can become vulnerable as businesses seek lower-cost alternatives or adopt new technologies.

“That is the reality of loyalty in 2026,” he said, “Your company will celebrate your 10-year anniversary with a plaque. Then retrench you in year 11 because they found someone cheaper or an AI tool that does 80% of your job.”

He added, “Your loyalty is not an asset to them. It is a liability. Because the longer you stay, the more you cost compared to someone fresh who will take less.”

Pointing out that retrenchment benefits are not legally mandated in Singapore, Mr Sim said, “The only money you are guaranteed is what is written in your contract. Everything else is goodwill. And goodwill is the first thing to vanish when a company is in trouble.”

Reflecting on the impact of job loss on families, he added, “I think about this as a father of three. A job loss does not land on one person. It lands on a mortgage, school fees, ageing parents, a whole household that never got a vote in the decision.”

He argued that workers today need to take greater responsibility for their own financial resilience and career development.

“The generation before us could work 30 years at one company and retire with a pension. That deal is gone. It is not coming back,” he wrote, “The new deal is simple: you are responsible for your own safety net.”

Encouraging workers to continually upgrade their skills and maintain financial buffers, he advised: “Build skills that are not tied to one company. Save like your job could disappear tomorrow, because it can. Because the day you get that email, the only thing standing between you and panic is what you built for yourself while you were employed.”

Under Singapore’s labour framework, rank-and-file employees and certain executives in unionised companies may be entitled to union representation, with retrenchment benefits often specified in collective agreements negotiated between unions and employers.

Workers employed by non-unionised companies can still seek assistance from NTUC but without a collective agreement or contractual provisions guaranteeing retrenchment benefits, unions can only advocate on their behalf and encourage employers to provide reasonable compensation.

For many workers, having retrenchment benefits explicitly written into employment contracts remains the strongest form of protection, although such provisions are still relatively rare here.

Looking ahead, Mr Tay said NTUC is pushing for stronger safeguards as PMEs face increasing disruption from economic transformation and technological change.

Among the proposals being advanced are earlier retrenchment notices and broader access to the SkillsFuture Jobseeker Support Scheme for involuntarily unemployed workers.

NTUC is also participating in the ongoing review of the Employment Act alongside the Government and employers, with the aim of securing stronger protections for PMEs.

“We’re trying to get more of the PMEs to be aware that they can be part of a union and that actually we can represent them,” Mr Tay said.

This article (‘Loyalty has become a liability’: Singaporeans react to rising retrenchments) first appeared on The Independent Singapore News.