DHL unit lays off workers in S’pore, 3 affected in ‘March retrenchment’

DHL Global Forwarding Singapore, a unit of global logistics firm DHL Group, has carried out a retrenchment exercise in Singapore.

According to The Straits Times (ST), a spokesperson for the firm confirmed the retrenchment exercise on Mar. 31 in an email.

The spokesperson told ST that the retrenchments were guided by business needs and based on merit.

Responding to queries from Mothership, the Singapore Manual and Mercantile Workers’ Union (SMMWU) stated that three employees had been affected in the “March retrenchment”.

They also said affected employees were kept “well informed” by company representatives and are receiving support from the Union Branch Officials and the Union Headquarters.

Online speculation

Rumours regarding the retrenchment exercise surfaced online two months ago, when a Reddit user claimed that a family member was affected by it.

While the user claimed that the retrenchment exercise was not unexpected, concerns were raised about its disproportionate impact.

In another Reddit post on Mar. 30, a user also detailed the retrenchment exercise in a forum that discusses negative Singaporean workplace culture.

In response to queries from Mothership, a DHL spokesperson said that they were “aware of the online discussions regarding retrenchment matters in Singapore”.

“We remain committed to treating all employees with fairness, respect, and in full accordance with local regulations and our internal policies. Any workforce-related decisions we make are guided by current business needs.”

Support networks and compensation terms

According to ST, in a collective agreement between the company and the union published in the Government Gazette on Mar. 19, 2025, affected employees are entitled to one month's salary or one month’s notice.

Employees with at least two years of continuous service are eligible for retrenchment benefits, and will receive one month of their last drawn basic salary for each year they have worked at the company.

However, retrenchment payouts are limited to either 25 months based on the last drawn basic salary or the amount the employee would have earned until retirement age, whichever is lower.

SMMWU told Mothership they will also continue to provide assistance and resources to the affected employees where needed.

In accordance with the Tripartite Guidelines on Managing Excess Manpower and Responsible Retrenchment, employees who believe that they were unfairly selected may raise the matter with the union for assistance.

Operations continue

According to the DHL Global Forwarding website, the DHL unit provides global freight forwarding services to facilitate and enable international deliveries.

The company has two offices in Singapore, at Changi South and Alps Avenue.

As of Apr. 2, the firm’s website has 31 Singapore-based job openings, including roles in freight operations and management.

According to the SMMWU, the number of employees affected has been under continuous review since January 2026.

The company is required to inform the Ministry of Manpower within five days of retrenching workers.

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