59 workers retrenched due to Oatly S'pore plant closure

A total of 59 people will be retrenched following the closure of Swedish oat milk producer Oatly.

A total of 34 Oatly employees are affected, while beverage manufacturer Yeo's will lay off 25 out of 41 employees directly involved in the manufacturing operations, The Straits Times and CNA reported.

The 25 who got laid off will get severance packages based on their salary and years of service, Yeo's said in a statement accompanying a bourse filing on Dec. 19, as reported by ST.

The company will put 16 employees in other roles within the company, it said.

Yeo’s said affected employees were hired to support Oatly’s production at Yeo’s Senoko plant, and Oatly’s evaluation of its supply network led to the layoff.

End of partnership

The partnership between Yeo's and Oatly started in 2019.

Oatly opened the S$30 million production plant in Senoko in October 2021.

The Swedish producer said earlier on Dec. 18 its Singapore facility will close to cut costs.

As a result of Oatly’s decision to exit from Singapore, the local Oatly facility, which operates under a co-packing agreement with Yeo’s, will cease producing Oatly drink products by the end of this year, ST reported, citing Yeo’s chief financial officer Lai Kah Shen, as per the bourse filing.

Yeo's and Oatly had entered into an exit agreement to dissolve their tie-up to produce Oatly beverages in Singapore.

Yeo’s will receive exit compensation amounting to S$32 million in instalments to be paid up by January 2027.

Union notified

Yeo's said it informed the Food, Drinks and Allied Workers Union (FDAWU) when Oatly made its announcement on Dec. 18 and has been working with the union to ensure fair compensation.

The union and Yeo’s will also work with the National Trades Union Congress’ Employment and Employability Institute to help those affected with job matching support.

Top photos via Oatly & Google Maps