Shake-ups are use/w, but firms need to get the human equation right

There are emotional and motivational impacts on workers when they are shuffled or shown the door.

- Andy I. Yap

Former General Electric CEO Iack Welch once said: "If the rate of change on the outside exceeds the rate of change on the inside, the end is near."

To remain competitive, companies must adapt quickly to an ever-evolving business landscape. In times of growth, they may expand rapidly, hiring aggressively. But when conditions shift, so must their strategies. This often requires realigning roles, streamlining processes, or improving operational efficiency to meet new objectives and needs.

There is a growing trend in the tech sector of mass layoffs as part of those adaptation strategies. Preliminary labour market data released on Oct 29 by the Manpower Ministry showed that while retrenchment figures decreased or remained stable across sectors, corporate restructuring remained the top reason for retrenchments.

In October, Dyson announced a sudden retrenchment exercise in Singapore. At its global headquarters, an undisclosed number of employees were reportedly summoned via e-mail to one-on-one meetings, where they were informed their roles were redundant and they were being let go.

The abruptness of the process left employees in shock, morale plummeted, and Dyson faced immediate public criticism. The company was faulted for the lack of notice, poor engagement with the union, and the opaque nature of the layoffs.

Such episodes involving many tech companies across the globe raise critical concerns about how such reorganisations are handled and their profound impact on employee motivation and well-being.

Retrenchment is just one form of reorganisation deemed necessary. But companies should proactively identify alternatives early on to minimise its negative impact. The true challenge lies in executing them successfully.