S'pore's Creative Technology retrenches an estimated 14% of its staff

Singapore multinational electronics company Creative Technology retrenched about 40 staff, or 14 per cent of its workforce, according to The Straits Times.

Also known as Creative Labs, the local firm's restructuring exercise affected several departments, including sales and marketing, according to ST.

A company spokesperson said it made the decision to restructure parts of its business to adapt to the evolving market conditions.

"Decision was not taken lightly": Company spokesperson

Saying that the "decision was not taken lightly", the spokesperson added that the firm would support affected staff, which was conducted in line with the guidelines by the Ministry of Manpower.

The spokesperson said restructuring would allow the company to build a stronger and more sustainable future to put it back on a sustainable trajectory ahead.

However, the spokesperson declined to confirm the number of affected staff or whether they were located in Singapore.

The company website stated that it has more than 280 employees worldwide, which is reportedly a fraction of the company's workforce during the 2000s.

Just a month prior, Creative Technology chief executive officer (CEO) Song Siow Hui retired after more than three decades in the company, reported Singapore Business Review.

Executive Chairman Tan Jok Tin was appointed interim CEO as the board searches for its next leader.

Losses over the last few years

The company's net loss widened to US$6.1 million (S$8.1 million) from US$4.1 million (S$5.4 million) in the year-ago period for the first six months of its fiscal year that ended on Dec. 31, 2024, despite high net sales of US$37.4 million (S$49.8 million) and a 18 per cent rise from US$31.8 million (S$42.3 million) in the year-ago period.

Creative Technology gave notice that it has recorded pre-tax losses for three consecutive years in November 2024.

Uncertainty over global issues, including import tariffs by the Trump administration and potential retaliatory measures from the affected countries, may also increase inflationary pressures and affect consumer demand, the company said.

Company founded in Singapore in 1981

Creative Technology was founded in Singapore in 1981, where it grew in popularity for its Sound Blaster sound cards, as well as other high-quality digital entertainment products, including wireless speakers, premium headsets, and wireless gaming headsets.

It also launched its Nomad MP3 player in 1999, beginning the trend of portable music players two years before Apple unveiled the iPod.

Growing wave of tech layoffs around the world

The announcement underscores a growing wave of tech layoffs affecting companies in Singapore and globally.

Just a month prior, social media platform TikTok laid off several employees from its Trust and Safety unit at its Singapore office on Feb. 20, with at least 12 TikTok employees in Singapore losing their jobs "with immediate effect".

In an email, TikTok stated that the decision was made "after months of careful consideration" to help the company with its "operational efficiency" and align better with its business needs, according to ST.

Meta also appeared to be downsizing its staff numbers, laying off several employees at its Singapore office as part of its "performance terminations" in mid-February.

The latest round of layoffs at Meta would affect around 3,600 of its employees worldwide, which represents 5 per cent of its global headcount.

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Top image via Creative Technology website.