Ninja Van cuts 5% of workforce in Singapore

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.

There are about 450 staff based at its Singapore corporate headquarters in Kay Siang Road, near the Tanglin area, with those working in technology numbering over 100 in the Republic overall.

A LinkedIn search shows over 4,500 people who reported currently working for Ninja Van, which operates in Singapore, Malaysia, Indonesia, Vietnam, the Philippines and Thailand.

The firm also has a technology team based in Hyderabad, India.

The latest round of layoffs follows an exercise on April 30 that cut about 10 per cent of its tech team and drew flak from the National Trades Union Congress for its timing – a day before May Day.

The earlier exercise came after Ninja Van’s chief executive and co-founder Lai Chang Wen revealed in March that the company would put off plans for an initial public offering amid profitability challenges.

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 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 such as marketing.

The exercise impacted jobs in Vietnam as well, ST understands.

Staff in Indonesia were caught up in the cuts too, according to a July 1 report from The Business Times, citing a source.

Mr Lai is set to deliver a message via livestream at 11am on July 2.

Ninja Van declined to respond to queries on the size of its workforce and whether Singapore was the only country affected.

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This article was first published in The Straits Times. Permission required for reproduction.