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Japanese multinational Panasonic said in a statement on Sep. 23 that it would stop manufacturing refrigeration compressors in Singapore by the end of Sep. 2022.
These manufacturing operations will be carried out in the Japanese multinational's existing facilities in Malacca, Malaysia, and Wuxi, China instead.
700 employees to be retrenched by Sep. 2022
Panasonic pointed to a "challenging global business outlook" as the background for its decision, as well as a "long-term business strategic review" of its refrigeration compressor business portfolio.
700 employees will be retrenched as a result of the review.
"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," said Panasonic in its statement.
According to The Straits Times (ST), around half of the 700 retrenched workers are Singaporeans, with Permanent Residents making up another 13 per cent of the group.
60 per cent of the group are above the age of 50, and another 30 per cent are between 30 and 50, according to Khoo Chew Thong, advisor for R&D and quality administration at Panasonic Appliances Refrigeration Devices Singapore, who spoke to ST .
Khoo also said that one-to-one sessions will be held with affected employees, and that the company will be exploring possible re-employment for its staff in other Panasonic group companies here.
One batch of the workers' will have their last day of work on Mar. 31, 2022, and the rest will have their last day on Sep. 30, 2022.
Singapore still "a regional and important hub" for Panasonic
Panasonic said that Singapore remains "a regional and important hub", and that it will continue to employ over 1,400 employees in areas such as high-value manufacturing, research and development (R&D), as well as in Panasonic's Asia Pacific Headquarters.
It added that its R&D operations would remain here.
Singapore will also continue to be the global headquarters of its refrigeration compressor business.
"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 the statement.
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