Gardenia to shut Singapore bakery and cut 141 jobs as production shifts to Johor Bahru

SINGAPORE: Bread manufacturer Gardenia will shut its bakery production facility at Pandan Loop and retrench 141 employees as it shifts manufacturing operations to Johor Bahru, Malaysia, in the latest restructuring move affecting Singapore’s food and beverage sector.

The company announced on 20 May 2026 that production at the facility will cease on 30 June as part of efforts to improve operational efficiency and maintain competitiveness amid a more challenging global business environment.

Gardenia said affected employees were informed during an internal meeting held on Wednesday morning.

“Gardenia informed employees of the decision at an internal meeting this morning and said affected staff will receive the appropriate notice period and support in line with local regulations and guidelines,” the company said in a media release.

The company added that it is considering eligible employees for alternative roles within its wider regional operations where possible.

Singapore to remain operational hub

Despite the closure of the Pandan Loop production facility, Gardenia said Singapore will continue to play a central role in the company’s regional operations.

About 250 employees will remain in Singapore after the transition, with the country continuing as the company’s hub for brand management, product development, quality and regulatory oversight, distribution and supply chain operations.

Gardenia said its Singapore team will continue overseeing quality governance and compliance with standards set by the Singapore Food Agency and the Health Promotion Board.

The company is a wholly owned subsidiary of Singapore-listed QAF Limited, which acquired Gardenia in 1985.

Gardenia was founded in 1978 as a small bakery at Bukit Timah Plaza before expanding across the Asia-Pacific region. It now operates in several markets including Malaysia, the Philippines and Australia.

Union mobilises support for workers

Gardenia said the Food, Drinks and Allied Workers Union (FDAWU) had been informed ahead of the public announcement, allowing support measures to be activated early for affected employees.

“This enabled the union to quickly mobilise support such as training, job placement assistance, and discussions on fair retrenchment terms,” the company said.

FDAWU also tapped its network of unionised partners to identify job vacancies for retrenched workers, according to Gardenia.

The union said its representatives attended the internal briefing session to address concerns raised by affected members.

FDAWU General Secretary Sankaradass S Chami said early engagement with the company allowed preparations to begin before the announcement was made public.

“Retrenchment is never easy for workers and their families, but we appreciate that Gardenia engaged FDAWU early before the announcement,” Sankaradass said.

“This early and constructive engagement gave the union time to work with the company on fair retrenchment terms, identify suitable vacancies and prepare support such as job matching, career coaching and skills training.”

Sankaradass also urged employers undergoing restructuring to engage unions responsibly during workforce transitions.

“As more companies restructure to stay competitive, we urge employers to take a similarly responsible approach: engage unions early, treat workers with dignity, and put practical support in place before decisions are made public,” he said.

“For the 141 affected Gardenia employees, FDAWU’s immediate priority is to help them move quickly into new opportunities.”

Gardenia said it will sponsor one year of union membership for existing members so they can continue accessing career and financial assistance after leaving the company.

In the coming weeks, FDAWU will organise on-site job matching and skills training programmes, including resume writing and interview preparation workshops.

Wider manufacturing restructuring trend

Gardenia’s decision follows a series of restructuring moves by manufacturers and multinational companies operating in Singapore.

In March 2026, beverage manufacturer Yeo Hiap Seng, commonly known as Yeo’s, announced plans to retrench 25 employees at its Senoko facility as it shifted can manufacturing operations to Malaysia.

The company said the move was intended to “optimise capacity utilisation and strengthen overall manufacturing efficiency across its network”.

Yeo’s said Singapore would continue serving as its headquarters, logistics hub and a smaller-scale manufacturing centre.

Separately, Asia Pacific Breweries Singapore announced plans to cut about 130 jobs while relocating parts of its production to regional markets including Malaysia and Vietnam.

Its Tuas facility is expected to be redeveloped over time to focus on logistics and innovation-related functions.

Other companies that have recently announced retrenchments or restructuring exercises include DHL Global Forwarding Singapore, JLL Singapore and Amazon Singapore.

FDAWU said recent closures in the consumer sector highlighted the risks workers face when companies shut operations abruptly.

The union cited the closure of Twelve Cupcakes in October 2025, which reportedly left close to 80 employees unpaid.

QAF financial performance

QAF Limited’s financial results showed mixed performance trends for the 2025 financial year.

Group revenue declined slightly year-on-year from S$636.1 million in FY2024 to S$633.6 million in FY2025, despite revenue growth over the broader five-year period.

However, earnings before interest, taxes, depreciation and amortisation (EBITDA) improved significantly from S$59.6 million to S$69.7 million over the same period.

The bakery segment, which includes Gardenia, Bonjour and Bakers Maison, recorded weaker EBITDA performance.

The segment’s EBITDA fell from S$58.2 million in FY2024 to S$48.2 million in FY2025.