DHL unit in Singapore confirms retrenchment of workers but declines to provide details on scope and roles
A DHL unit in Singapore has confirmed a retrenchment exercise following online discussions, but declined to reveal the number of workers affected or roles involved, as union and company statements highlight restructuring for long-term sustainability.
- DHL Singapore unit confirms retrenchment but provides limited details
- Union says layoffs tied to restructuring, with severance safeguards in place
- Online discussions highlight concerns over fairness, workforce trends, and industry pressures
SINGAPORE: A unit of DHL Group in Singapore has confirmed a retrenchment exercise, following weeks of online discussion, though details on the scale and scope remain undisclosed.
A spokesperson for DHL Global Forwarding Singapore said on 31 March 2026 that the company was aware of online discussions and remained committed to fair treatment of employees.
According to a report by The Straits Times, the spokesperson stated that workforce decisions were guided by business needs and merit, but declined to provide further information.
Online posts raise concerns over workforce impact
Speculation surrounding layoffs first surfaced two months ago, with renewed attention on 30 March when a Reddit user described a recent retrenchment exercise.
The post alleged that local employees were disproportionately affected, while some departments retained more foreign workers.
It further suggested cost considerations may have influenced decisions, claiming foreign workers might accept lower pay, and called for stricter workforce ratios.
Other users questioned the effectiveness of unions, while some encouraged affected workers to seek assistance.
Several commenters also pointed to broader structural issues such as automation, hiring frameworks, and workplace practices as possible contributing factors.
Union confirms restructuring but withholds figures
The Singapore Manual and Mercantile Workers’ Union confirmed on 1 April that the company had informed it of the retrenchment exercise.
The union described the move as part of a larger organisational realignment aimed at long-term sustainability.
It added that it is working closely with the company to ensure affected workers are treated fairly.
The union also stated that it had ensured severance packages aligned with the collective agreement, though it declined to disclose how many members were impacted.
Compensation terms outlined in agreement
The latest collective agreement, published in the Government Gazette on 19 March 2025, outlines retrenchment provisions for employees.
Workers are entitled to one month’s notice or salary in lieu of notice.
Employees with at least two years of service are eligible for retrenchment benefits equivalent to one month of their last drawn basic salary for each year of service.
However, payouts are capped at 25 months of salary or the amount the employee would have earned until retirement age, whichever is lower.
Business operations continue amid layoffs
Despite the retrenchment exercise, job listings reviewed on 1 April indicated that at least 10 roles remained open in Singapore.
These positions include opportunities in business development and air freight import functions.
According to corporate records, DHL Global Forwarding Singapore operates from two locations, at Changi South Street and Alps Avenue.
The unit is part of DHL Group’s global freight forwarding operations, which span more than 220 countries and territories.
The company reported approximately 584,000 employees worldwide in its 2025 annual report.
Under current rules set by Singapore’s Ministry of Manpower, employers with at least 10 employees must notify authorities within five days of any retrenchment exercise.
This requirement applies regardless of the number of workers affected.
The retrenchment comes amid ongoing shifts in the logistics sector, where companies are adapting to changing demand, cost pressures, and technological developments.
Pritam Singh calls for stricter retrenchment rules for larger firms; Dr Koh defends current framework
During a 4 February 2026 parliamentary sitting, Pritam Singh, Member of Parliament for Aljunied GRC, called for stricter retrenchment rules, particularly for larger firms.
He cited cases from late 2025 involving poor notification practices and severance clauses discouraging workers from seeking assistance.
Senior Minister of State for Manpower Koh Poh Koon responded that most retrenched workers between 2020 and 2025 received benefits aligned with tripartite guidelines.
He noted that about nine in 10 eligible employees received payouts, with most getting at least two weeks’ salary per year of service.
Singh proposed mandatory reporting of all retrenchments and stronger penalties for companies with unfair clauses.
Koh rejected these proposals, stating that stricter requirements could impose administrative burdens and strain businesses financially.
The Government maintained that the current framework balances worker protection with business flexibility.
