Singapore White-Collar Job Losses Rise as Unions Handle 3,900 Cases, June 09

Singapore’s National Trades Union Congress handled over 3,900 retrenchment and termination cases for white-collar workers in 2025, a 5% increase from 2024. Retrenchments have more than doubled since 2022, rising from 6,440 to 14,490 last year. Companies cite business restructuring, offshoring, and artificial intelligence investments as reasons for job cuts. NTUC warns many professionals remain unaware they can seek union support during layoffs.

Retrenchments Double Despite Low Unemployment

Singapore’s unemployment rate stayed low at 2% in 2024 and 2025. Yet retrenchments surged from 6,440 in 2022 to 14,490 in 2025. The National Trades Union Congress handled over 3,900 retrenchment and termination cases for professionals, managers and executives in 2025, up 5% from 2024. These figures do not include cases from NTUC’s Employment and Employability Institute.

Offshoring and AI Drive Job Cuts

Companies are relocating operations overseas to cut costs, with some roles shifted out of Singapore despite local workers being experienced and capable, said NTUC assistant secretary-general Patrick Tay. Artificial intelligence has also become a factor in workforce restructuring. Tay stated: “Some workers find themselves displaced because job roles are changing faster than they can adapt.” Professional services, finance, and infocomm and technology sectors face the most exposure to generative AI disruption.

Workers Winning Settlements With Union Help

An IT professional identified as Benjamin was terminated in February 2026 after 18 years at a non-unionised company despite positive performance reviews. After seeking NTUC’s help, the company agreed to a settlement of S$47,600, comprising six months ex-gratia payment and one month’s bonus. Another executive named Raghu received three months’ salary in lieu of notice and two months’ retrenchment benefit after NTUC advised him on his contractual rights.

Disguised Retrenchments Spark Regulatory Warning

Singapore’s Ministry of Manpower and NTUC clarified that employees whose Singapore-based roles are made redundant are considered retrenched, even if offered opportunities to apply for similar positions overseas. The guidance follows Swedish fashion retailer H&M’s relocation of its Southeast Asia headquarters from Singapore to Malaysia. Employees were asked to reapply for 178 regional roles, many shifted out of Singapore. MOM confirmed it received a mandatory retrenchment notification from the retailer.

Final Thoughts

Singapore’s retrenchment surge reflects structural shifts in the economy, not weakness in overall employment. White-collar workers in tech, finance, and professional services face the highest risk from offshoring and AI. Union support can materially improve severance outcomes for affected workers.

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