Dyson Suddenly Lays Off an Undisclosed Number of Workers in Singapore

In a surprising turn of events, Dyson, the multinational technology company known for making hair drying cool again, conducted an unexpected round of layoffs in Singapore on Tuesday, 1 October 2024.

The move caught employees off guard, especially given the company’s recent statements about Singapore not being directly impacted by a global restructuring that involved cutting about 1,000 jobs in Britain just three months earlier.

Here’s what Happened.

Discreet Layoffs and Low Morale

The retrenchment exercise was reportedly carried out discreetly, with affected employees receiving emails summoning them to “one-on-one” meetings. During these meetings, HR representatives informed them that their positions had become redundant and instructed them to pack their belongings and leave.

Although the exact number of employees affected remains undisclosed, the manufacturing and procurement departments were reportedly impacted.

The lack of transparency surrounding the scale of the layoffs has left remaining staff uneasy, with one employee noting, “People are shocked and have low morale, as they aren’t sure when their turn might come.”

Surprising Timing Amidst Investments

The timing of these layoffs is particularly surprising given Dyson’s recent announcements of increased investments in Singapore.

In May 2023, the company revealed plans for a significant investment in advanced manufacturing, including a new 247,000 sq ft plant in Tuas to produce next-generation batteries, expected to be fully operational by 2025.

Dyson’s response to inquiries about the layoffs has been limited, with a company spokesperson saying this to CNA, “We constantly evolve the composition of our teams and take steps to ensure we have the right skills in the right places. Our ambitions in Singapore remain unchanged, and we anticipate that we will continue to grow here in the medium term.”

However, they did not provide specific details about the number of employees affected, the types of roles made redundant, or the reasons behind the decision.

Unions Express Disappointment

The United Workers of Electronics and Electrical Industries (UWEEI) expressed its disappointment with Dyson’s actions, stating that the matter has been “escalated” to the Ministry of Manpower (MOM).

The union voiced its frustration over the lack of sufficient time for meaningful discussions with Dyson regarding the retrenchment process.

Although the affected workers fall outside of UWEEI’s scope of representation under the current collective agreement with Dyson, the union emphasized its readiness to assist those impacted.

In response, a Dyson spokesperson said, “Dyson respectfully informed UWEEI in advance. Dyson is following all prevailing guidelines from the MOM and providing employees with the support they need, including outplacement services.”

Global Restructuring and Financial Performance

The layoffs in Singapore follow a previous round of job cuts in Johor Bahru, Malaysia, where Dyson operates a development centre.

The company has been undergoing a global restructuring, with announcements in July 2024 of plans to cut about 1,000 jobs from its UK workforce of 3,500. At that time, Dyson had a total global workforce of approximately 14,000 to 15,000 employees.

Despite these challenges, Dyson has reported strong financial performance, with global revenue growing 9% to £7.1 billion (S$12.3 billion) in 2023, and earnings before interest, tax, depreciation, and amortization (Ebitda) increasing to £1.4 billion.