141 employees retrenched as Gardenia shifts bakery production from Singapore to Malaysia

Home-grown bread manufacturer Gardenia is shifting its bakery production from Singapore to Johor Bahru, Malaysia. As a result, it will lay off 141 employees at its Pandan Loop facility, Channel News Asia reported on Wednesday (May 20).

The company cited ongoing efforts to improve operational efficiency and remain competitive amid an increasingly challenging global environment as the reason for the move.

Production at the Pandan Loop manufacturing facility will end on Jun 30.

“Gardenia informed employees of the decision at an internal meeting this morning and said affected staff will receive the appropriate notice period and support in line with local regulations and guidelines,” the company said in a media release.

“The company is also considering eligible employees for suitable roles within the group’s network of operations where possible.”

Singapore will remain Gardenia’s central hub for brand management, product development, quality and regulatory oversight, distribution, and supply chain—retaining about 250 employees post-transition.

Its Singapore team will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.

Gardenia said that the Food, Drinks and Allied Workers Union (FDAWU) was informed in advance about the layoffs.

“This enabled the union to quickly mobilise support such as training, job placement assistance, and discussions on fair retrenchment terms. FDAWU was also able to quickly tap on its network of unionised partners to identify suitable vacancies for affected workers,” it added.

“The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees.”

Nearly five decades ago, Gardenia started as one small bakery in Bukit Timah Plaza in 1978. Today, it operates across Malaysia, the Philippines, and Australia.

Gardenia’s decision comes after similar moves by other food and beverage manufacturers.

In Mar, beverage company Yeo Hiap Seng (Yeo’s) announced it would lay off 25 employees at its Senoko facility as it shifts can manufacturing operations to Malaysia.

Asia Pacific Breweries Singapore, which brews Tiger Beer, also said recently that it would cut about 130 roles as it shifts production to other regional markets such as Malaysia and Vietnam.

Featured Image Credit: National Trades Union Congress