'Retrenchment is part of corporate life': Woman recalls sudden layoff, uncertainty in job search, Singapore News

PUBLISHED ONMay 26, 2026 11:00 PMBYKoh Xing Ying

A surprise early morning calendar invite in May signalled the abrupt end of her job, leaving her confidence shattered.

The 29-year-old former brand manager with a multinational company, who wished to be known only as Yuang, said she and her colleagues were asked to attend a meeting with their bosses the same morning.

"When it [the announcement] first happened, it really hit my confidence. Three departments in my office were affected, and there were no hints whatsoever," Yuang told AsiaOne.

"Months of routine work, secret projects — it all made sense. When I spoke to HR following the news, they told me that retrenchment was part of corporate life," she recalled.

"The thing is, the business is actually growing year on year. My guess is that they are just freeing up more capital for other projects at headquarters."

Despite the setback, Yuang said her colleagues were supportive, forming informal networks to check in on each other and provide job referrals.

Reflecting on the emotional toll of the retrenchment, Yuang said she had hoped to spend many years at her former company.

"I thought [the company] would be a place where I could spend years because of the salary and how hard I worked to get where I [was]. Now, everything I had planned feels like it has to wait," she added.

Yuang pointed out that while the severance package provides some relief, recovery remains difficult amid a climate of corporate downsizing.

Companies adjusting hiring strategies

While Yuang is one among many affected by the recent wave of retrenchments, recruitment firms noted that the trend has not come as a surprise.

Speaking to AsiaOne, Reeracoen Group chief executive Kenji Naito said the retrenchments reflect a shift in hiring, rather than a broad-based hiring freeze.

"The recent retrenchment wave has not come as a complete surprise, as many companies have already been operating in a more cautious environment since 2024 (post-Covid)," said Kenji.

He added that the retrenchments are likely driven by restructuring, slower expansion, global uncertainty, rising costs, and ongoing AI transformation efforts.

"During the pandemic period, layoffs were often broader and more immediate, whereas companies now are focusing more on restructuring, productivity, and skills realignment," he said.

'Upskilling only way to stay relevant'

On April 30, the Ministry of Manpower (MOM) said Singapore's labour market grew at a slower pace in the first quarter of 2026 compared to the previous quarter, reflecting seasonal effects and a step-down from a high base.

In its quarterly labour force report, the ministry said total employment grew by 5,000 in the first quarter of 2026, down from 17,700 in the previous quarter.

There were a reported total of 3,700 retrenchments — or 1.5 per 1,000 employees — in the first quarter of 2026, comparable to 3,500 in the previous quarter, with MOM noting that the majority were due to business reorganisation or restructuring.

JAC Recruitment Singapore managing director Fahad Farook told AsiaOne that one contributing factor to the retrenchments could be the ongoing instability around the world, including the conflict in the Middle East.

Fahad added that in the current rapidly changing job market, workers need to remain open to learning new skills and exploring different opportunities.

"You can't be a specialist in one area your whole life. In the past, you could stay in one skill set, continue in it, and simply climb the ladder.

"In the new world of work, there is no guarantee you can stay in the same place and remain secure," he said.

"People need to have the mindset of continuously learning new things and upskilling. That's the only way to stay relevant."

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xingying.koh@asiaone.com

Adulting Working Life jobs Employment/Unemployment Job cuts Cost-cutting/Restructuring Employers/Employees