Yeo’s to cut 25 Singapore jobs as can production shifts to Malaysia in latest restructuring move

Yeo Hiap Seng (Yeo’s) will retrench 25 employees in Singapore, marking its third round of layoffs since 2022, as the heritage food and beverage group consolidates its can manufacturing operations in Malaysia.

The company announced on March 31 that the latest job cuts are tied to the relocation of can production to facilities in Johor and Selangor, part of a broader strategy to streamline operations, improve efficiency and better utilise capacity across its regional manufacturing network.

All affected roles are within can manufacturing. Following the retrenchment, Yeo’s will employ about 245 staff in Singapore, while maintaining a workforce of roughly 1,300 employees across its international operations.

Despite the operational shift, the company said its Senoko site will remain its headquarters and continue to serve as a cross-border logistics hub. The facility will also support smaller-scale manufacturing, innovation initiatives, commercial activities and regional coordination.

Yeo’s stated that it “deeply regrets” the impact on affected employees and has committed to providing job placement assistance, career guidance and counselling. Where possible, impacted workers will be considered for redeployment opportunities within its Malaysian operations.

The retrenchment exercise was carried out in consultation with the Food, Drinks and Allied Workers Union (FDAWU), with the company informing the union in advance. According to Singapore’s Ministry of Manpower (MOM), this engagement took place earlier in 2025.

FDAWU General Secretary Sankaradass S Chami said the union worked closely with the company to secure fair outcomes for affected workers. Union representatives were present during a March 31 briefing to ensure clear communication and address employee concerns.

The union is continuing to support workers through job matching, career advisory and skills upgrading initiatives, including linking them to resources under the National Trades Union Congress (NTUC), such as the Employment and Employability Institute.

This latest move follows two earlier rounds of job cuts. In 2022, Yeo’s retrenched 32 employees, citing changing consumer behaviour, retail conditions and rising cost pressures. In December 2024, another 25 roles were cut after Swedish oat milk producer Oatly shut its Singapore plant, affecting workers hired for joint production.

The restructuring comes amid longer-term shifts in Yeo’s business performance and revenue mix. While the SGX-listed company reported a net profit of S$21.1 million for the financial year ended December 2025, up from S$6.9 million the previous year, both overall revenue and core food and beverage sales declined, reflecting weaker consumer spending and intensifying competition.

Over the past decade, Yeo’s revenue has trended downward, falling from S$443 million in 2015 to S$328 million in 2024. Singapore’s contribution has also shrunk significantly, dropping from about one-third of total revenue in 2015 to roughly 20 per cent in 2024.

In contrast, Malaysia and Brunei have grown in importance, now accounting for about half of the company’s total revenue, underscoring the strategic rationale behind shifting production capacity to the region.

Yeo’s said the consolidation will allow its Malaysian operations to take on a greater share of production while ensuring a stable supply of products for the Singapore market. The company added that the restructuring will not have a direct impact on beverage prices.

The move comes amid a broader wave of restructuring in Singapore’s manufacturing and consumer goods sector. Just days earlier, Asia Pacific Breweries Singapore, a subsidiary of Heineken, announced plans to wind down large-scale brewing operations in the country over the next two years, a move expected to affect around 130 roles.

Founded over a century ago, Yeo’s remains one of Singapore’s most recognisable home-grown brands, known for its range of Asian beverages such as soya milk and chrysanthemum tea, distributed across more than 30 markets worldwide.