Significant Rise in Job Cuts for Local Tech Employees
SINGAPORE: The tech sector in Singapore has seen a significant rise in retrenchments, with 1,270 local employees laid off between July and mid-November, according to Manpower Minister Tan See Leng’s update to Parliament on Monday, November 28. This marks a notable increase compared to the 260 local workers who were retrenched in the first half of 2022.
The majority of those affected held non-tech positions, including roles in sales, marketing, and corporate functions, accounting for around 80% of the job losses. Notably, approximately 70% of those laid off were under 35 years old, reflecting the sector’s younger workforce. Dr Tan also highlighted that the numbers of retrenched employees have been increasing, driven in part by global tech layoffs affecting companies such as Meta, Twitter, and Shopee.
While this increase in retrenchment is concerning, it must be seen in the context of the sector’s overall employment growth. As of June, the Information and Communications (I&C) sector employed 136,100 residents, marking a steady annual rise in workforce numbers since 2017.
Despite the job losses, there has been a stronger than average recovery rate for workers in the sector. Dr Tan pointed out that, in the second quarter of the year, the rate of re-employment for I&C sector workers within six months of retrenchment was higher than the overall national rate, indicating good opportunities for those affected to re-enter the job market.
Additionally, there has been a continued rise in job vacancies within the sector, from 11,100 in December 2021 to 12,100 in June 2022. Even industries like financial services are expanding their hiring of tech roles. Half of the tech companies responsible for layoffs have partnered with outplacement services to help employees transition to new roles.
The Ministry of Manpower is working closely with workforce support agencies like Workforce Singapore and the Employment and Employability Institute to facilitate retraining and job search assistance. For those affected, particularly those in non-tech roles, the government encourages participation in career conversion programmes to enhance employability.
Minister Tan acknowledged that while macroeconomic challenges could affect future hiring trends in the tech sector, the overall employment outlook remains positive, with a focus on skills development to help displaced workers secure new positions.
