DHL unit retrenches workers in Singapore; company and union decline to give details

SINGAPORE – A DHL unit in Singapore has laid off its workers, but it remains unclear how many workers were retrenched and what roles were affected, as the company and its union declined to provide details.

Online chatter on retrenchments in DHL Global Forwarding Singapore first surfaced two months ago, and on March 30, a Reddit user posted details of the company’s latest retrenchment exercise in a forum that discusses workplace culture.

A spokesman for the freight transport company on March 31 confirmed the retrenchment exercise in response to queries from The Straits Times.

“We are aware of the online discussions regarding retrenchment matters in Singapore. We remain committed to treating all employees with fairness and respect, in full compliance with local regulations and our internal policies,” said the spokesman in an e-mail.

“Any workforce-related decisions we make are guided by current business needs and based on merit,” the spokesman said, adding that the company would not be providing further details.

According to Accounting and Corporate Regulatory Authority records, DHL Global Forwarding Singapore is a division under DHL Group that provides international freight forwarding services. The unit has two Singapore offices – at 1 Changi South Street and 81 Alps Avenue.

The Singapore Manual and Mercantile Workers’ Union said in a statement on April 1 that DHL Global Forwarding Singapore is a unionised company. A spokesman added that the union was informed of the company’s restructuring exercise that is “part of a larger organisational realignment for long-term sustainability”.

The union said it is working with the company closely to ensure that affected workers are treated fairly, adding: “The union also worked with the company to ensure that the affected workers will receive a fair severance package, in line with the collective agreement.”

It declined to provide details on how many members were affected.

The latest collective agreement between the union and the company published in the Government Gazette on March 19 stated that retrenched employees would be given one month’s notice or one month’s gross salary.

Those who have worked for the company for at least two years are entitled to retrenchment benefits – a sum equivalent to one month of the last drawn basic salary for each year of service.

But the maximum retrenchment benefit is capped at 25 months based on the last drawn basic salary, or what the employee would have earned up to retirement age had the employee not been retrenched, whichever is lower.

Even as the Singapore unit lays off workers, a check on job openings on its website by ST on April 1 showed at least 10 Singapore-based roles in areas such as business development and air freight import.

According to DHL Group’s annual report 2025, the global logistics firm has about 584,000 employees in over 220 countries and territories.

ST has contacted the Ministry of Manpower on whether it has been notified of the layoffs.

Under the ministry’s current rules, employers with at least 10 employees must notify it within five days after retrenching workers, regardless of the number affected. 

[[nid:732632]]

This article was first published in The Straits Times. Permission required for reproduction.