Ninja Van lays off 5% of workforce in Singapore

SINGAPORE: Logistics provider Ninja Van has laid off about 5 per cent of its employees in Singapore.

Responding to CNA's queries on Monday (Jul 1), a Ninja Van spokesperson noted that while e-commerce remains competitive in Southeast Asia, they "recognise the need to diversify beyond e-commerce to ensure the organisation’s long-term growth".

"In line with the group’s direction, we have reviewed the roles within the organisation to assess its alignment with our future needs," said the company, which was launched in Singapore in 2014 and operates across Southeast Asia.

"Unfortunately, despite our efforts to minimise impact, we were unable to avoid layoffs impacting 5 per cent of our colleagues in Singapore."

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The latest round of job cuts comes after Ninja Van laid off about 10 per cent of the region's tech team in April.

In the wake of those layoffs, the National Trades Union Congress (NTUC) said it was "dismayed" at the timing, which was just before Labour Day, an occasion to celebrate the contributions of workers.

On Tuesday, the NTUC-affiliated Supply Chain Employees’ Union (SCEU) told CNA that Ninja Van is not unionised but had informed the union ahead of the latest round of layoffs.

Employees with transferable skills have been transitioned to support the newly launched logistics verticals, the Ninja Van said. 

"Earlier this year, we announced our expansion into other logistics verticals of B2B (business-to-business) restock and cold chain, made possible with our existing e-commerce infrastructure and tech-enabled logistics solutions," added the company

Ninja Van did not respond to queries on the number of workers affected in Singapore by the latest retrenchment exercise, as well as the roles that have been cut.

Its spokesperson, however, said affected employees have received a "reasonable severance package" to support the transition.

As part of the package, those affected are given one month of severance pay per full year of employment and garden leave until their last working day.

They will also have career transition support, and access to the company chat and office to facilitate handovers and farewell.

The deadline for exercising vested options would be extended from 30 days to a year, according to the spokesperson.

Medical insurance and mental health support have also been extended to Dec 31.