Borneo Motors, the Singapore distributor of Toyota and Lexus vehicles, has laid off an undisclosed number of employees as part of a restructuring exercise, following a series of senior leadership departures at its parent company, Inchcape Singapore.
The retrenchments took place on July 30, with the company declining to disclose how many workers were affected, citing ongoing discussions.
“Inchcape has reviewed its organisation in Singapore to ensure the business remains well-positioned to deliver for customers and brand partners,” an Inchcape spokesman said.
“As a result, we are making targeted changes to streamline our operations and better align with current needs and future priorities.”
Borneo Motors is a unionised company represented by the Singapore Manual and Mercantile Workers’ Union (SMMWU).
Andy Lim, the union’s secretary-general, said the company had notified the union ahead of the restructuring.
The affected employees are believed to have been informed on July 30, which was also their final working day. SMMWU worked with Borneo Motors on the severance arrangements to ensure they were fair and consistent with the collective agreement.
Lim said employers carrying out restructuring or retrenchment exercises should communicate with affected workers as early as possible. Early engagement allows the National Trades Union Congress (NTUC) and unions to work with employers to support affected employees before their final working day, he said.
Under the collective agreement, SMMWU must receive one month’s notice of plans to retrench staff. Affected employees are entitled to two months’ notice or payment in lieu of notice.
Employees covered by the agreement are entitled to a severance payment equivalent to one month’s basic salary for every completed year of service, capped at 25 years. Sales employees are entitled to $4,000 for each completed year of service, also capped at 25 years.
Following the layoffs, Borneo Motors held a town hall meeting on July 30 to confirm the restructuring, but did not disclose the number of employees affected or provide details about changes to individual roles.
Three employees, who spoke on condition of anonymity, said on July 31 that they had not yet been told how their responsibilities might change, whether workloads would increase or who they would report to. One employee said he expected to identify some of the affected workers through company email addresses that stopped working.
The Taskforce for Responsible Retrenchment and Employment Facilitation said it was working with Borneo Motors and SMMWU to support affected employees. A spokesman said the company had committed to providing a retrenchment package aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.
The task force includes representatives from Singapore’s Ministry of Manpower, the Skills and Workforce Development Agency, NTUC and its Employment and Employability Institute.
The restructuring follows several leadership changes at Inchcape Singapore. The company’s managing director resigned on July 21, following the departure of its finance and marketing directors.
Borneo Motors’ restructuring also comes as Singapore’s automotive market faces increasing competition from Chinese carmakers, particularly in electric vehicles. The shift towards lower-emission transport has created opportunities for newer EV-focused brands to gain market share as established automotive players adjust to changing consumer demand.