Singapore: Companies are slashing workforce; asking workers to take pay cuts due to pandemic
Author: Nabilah Awang, Today, Published on: 3 May 2020
"Survey shows 4% of companies in Singapore slashed workforce, another 21% looking to do the same", 30 April 2020
The livelihoods of many people are at risk or have already been shaken due to the Covid-19 pandemic, with workplaces fully or partially closing and businesses downsizing and suspending or adopting a cautious approach to hiring.
Insurance broker Aon did a survey with 1,889 organisations around the world, including 196 companies in Singapore, and found that 4 per cent of firms here had cut down their workforce and another 21 per cent are actively considering it as a result of the ongoing crisis.
Similarly, 8 per cent of companies have granted leave of absence to employees and another 21 per cent are actively looking at that option.
Preliminary data released on Wednesday (April 29) by the Ministry of Manpower (MOM) showed that total
Its findings showed that the pandemic has resulted in 10.7 per cent of companies asking employees to take pay cuts on a voluntary basis and a similar proportion asking employees to do the same involuntarily.
Mr Na Boon Chong, managing director and partner of human capital solutions of Southeast Asia at Aon, said: "Among survey respondents in Singapore, pay reduction starts at the top levels while protecting the rank and file as much as possible."