Borneo Motors lays off workers amid restructuring exercise

Singapore’s Government Technology Agency (GovTech) has confirmed that it will proceed with further layoffs as part of a broader workforce transformation aimed at improving the quality of digital services for citizens. Speaking in parliament on Tuesday (Aug 4), Senior Minister of State for Digital Development and Information Jasmin Lau emphasized that reshaping the agency’s workforce was essential to keeping pace with rapid technological advancements. She noted that despite years of natural attrition and targeted recruitment, these measures were insufficient to meet the evolving demands of GovTech’s mission. The agency, which operates under the Ministry of Digital Development and Information (MDDI), has already begun its first phase of restructuring, cutting 93 jobs in July. This marks the start of a planned three-phase transformation expected to span two years. GovTech anticipates reducing its workforce by approximately 7 to 9 percent, around 300 employees, from its current pool of nearly 3,900 permanent and contract staff. The second phase of the plan is scheduled to be announced by November, though specific details remain pending. Lau explained that the shift represents a strategic pivot from a traditional project-delivery model to a continuous product-ownership approach. Under this new framework, GovTech officers will assume greater end-to-end responsibility for government digital products and platforms, ensuring they are designed, built, maintained, and improved continuously. This change aims to enhance reliability, security, and responsiveness in digital services offered to Singaporeans. To support this transition, the agency is increasing its focus on hiring software engineers, product managers, designers, data specialists, cybersecurity experts, and platform engineers, while reducing reliance on personnel focused on project and vendor management. Demographic data released by Lau revealed that the majority of those impacted in the initial phase were aged between 40 and 50. Specifically, individuals in their 40s made up 42 percent of both the 93 retrenched officers and the 305 affected officers. While this age group was not overrepresented, approximately 30 percent of the affected workers were over 50. Median tenure for both retrenched and retrained employees stood at around five to six years. Retrained workers are receiving full salaries alongside structured training and on-the-job learning to adapt to the new operational model. Lau acknowledged the disruption caused to affected officers and their families, stating that the government would provide full support throughout the process. She highlighted that one-third of the affected employees were team leaders, while the rest were individual contributors. The retraining program includes apprenticeships, which offer comprehensive development opportunities tailored to the evolving needs of GovTech’s operations. Separately, Borneo Motors, a subsidiary of global automotive distributor Inchcape, announced layoffs on July 30 as part of a restructuring initiative. The motor dealer, which distributes Toyota and Lexus vehicles in Singapore, did not disclose the exact number of affected workers, citing ongoing discussions. The company, which is unionized under the Singapore Manual and Mercantile Workers’ Union (SMMWU), reportedly informed the union prior to the restructuring. The union, led by Secretary-General Andy Lim, played a role in ensuring the severance package met collective agreement standards. Affected employees received two months’ notice, with severance entitlements based on years of service. Sales staff received additional compensation, with payments capped at 25 years of service. Despite the restructuring, some workers remained uncertain about the long-term implications, including potential changes in roles or reporting structures. A town hall meeting was held to address concerns, though specifics on job security and future responsibilities were not clarified. The restructuring follows leadership changes at Inchcape Singapore, including the departure of the managing director, finance director, and marketing director within the past six months. As a major player in Singapore’s multi-brand motor franchise sector, Borneo Motors faces challenges from rising competition, particularly from Chinese automakers offering electric vehicles that align with Singapore’s push toward sustainable transportation.