2-2-2024 (SINGAPORE) Swedish home appliances manufacturer Electrolux has announced its decision to shut down its regional headquarters in Singapore by May, which could potentially impact around 100 to 200 employees. The closure comes as part of Electrolux’s global restructuring plan, aimed at streamlining operations and addressing weak consumer demand. While most affected employees are expected to be retrenched, a few have been offered relocation packages.
The imminent closure of Electrolux’s regional office for the Asia-Pacific, Middle East, and Africa (Apac & MEA) region at Rochester Park was internally announced on December 13, 2023, according to sources. Electrolux’s director of communication for Apac & MEA transformation, Ms Samar Refai, confirmed the closure but did not comment on the specific May deadline. The company’s Apac & MEA commercial leadership team will be relocated to Bangkok.
Ms Refai emphasized that the affected employees would be provided with maximum support during the transition period and treated with utmost respect. The decision to close the Singapore regional office was driven by the company’s strategy to leverage product and brand synergies by merging the business regions of Europe and Apac & MEA. Australia and Thailand will become key hubs for Electrolux in the region, ensuring proximity to customers, consumers, manufacturing sites, research and development, and innovation centers.
However, Electrolux’s closure of the regional office in Rochester will not impact the operational business and trade relations in any of its markets in Apac & MEA, including the Singapore sales office in Braddell. The company remains committed to driving business growth in the region.
The news of the impending closure has left employees in a state of uncertainty since December. An estimated 100 to 200 employees, including Singaporeans, permanent residents, and expatriates, work at the Rochester office, which houses various teams such as marketing, finance, and product design.
In January, employees were invited to a town hall meeting at the regional headquarters’ office, where it was announced that the physical office would close by May. The human resources department will hold one-on-one meetings with each staff member to discuss individual arrangements. Details of the retrenchment package were revealed, entailing three weeks of pay for every year of service, capped at 30 weeks. Additional pay would be provided based on the length of employment.
While some employees appreciated the phased approach and substantial severance package offered by the company, others expressed dissatisfaction with the timing of the announcement, which coincided with the holiday season. The closure has caused stress and low morale among the employees, who now face the challenge of finding new jobs in a competitive market.
Less than 20% of the affected employees were offered relocation packages, primarily to Bangkok. Concerns were raised about travel arrangements and the possibility of being retrenched after relocating. Employee representatives stated that travel arrangements to visit family would have to be discussed with line managers, with costs borne by the employees themselves. Those who change their minds about relocation will not receive any retrenchment benefits.
