SINGAPORE – Logistics technology company Ninja Van has laid off 5 per cent of its workforce in Singapore, it said on July 1, as the firm retools itself for its expansion into new logistics segments that was announced in April.
The latest round of cuts follows an exercise on April 30 that cut about 10 per cent of its technology team and drew flak from the National Trades Union Congress for its timing – a day before May Day.
A Ninja Van spokesperson on July 1 noted that the company’s expansion into business-to-business restocking and cold chain logistics was made possible with its existing e-commerce infrastructure and tech-enabled logistics solutions.
The spokesperson said: “In line with the group’s direction, we have reviewed the roles within the organisation to assess their alignment with our future needs.
“Unfortunately, despite our efforts to minimise impact, we were unable to avoid layoffs impacting 5 per cent of our colleagues in Singapore.”
Those with transferable skills have been put on a transition to support the two new business segments the company has expanded into, the spokesperson added.
The spokesperson also said those laid off were paid one month of severance for each full year of employment and put on gardening leave until their last working day, which was not disclosed.
Their medical insurance and mental health support have been extended to Dec 31, 2024.
The deadline to exercise vested stock options has also been extended from 30 days to a year, the spokesperson said.
The company will provide career transition support, such as curriculum vitae reviews and interview training.
Those retrenched will retain company chat and office access to facilitate proper handovers and farewells, the spokesperson added.
The expansion announced in April involves a foray into transporting items that require refrigeration, as well as helping businesses restock.
Mr Lai Chang Wen, Ninja Van’s chief executive and co-founder, told reporters then that the company could deliver fresh sashimi “at close to e-commerce prices” to consumers, and that about 20 businesses had signed up.
The cold chain service was said to eventually be expected to contribute 10 per cent of the company’s revenue and 50 per cent of the total profit.
A source told The Straits Times that junior technology staff across all segments were hit by the layoffs, as well as other divisions.
Mr Lai is set to deliver a message via livestream at 11am on July 2.
https://www.straitstimes.com/singapore/jobs/ninja-van-cuts-5-of-singapore-workforce
