Gardenia axes 141 staff in Singapore as it relocates bakery production to JB

[SINGAPORE] Bread maker Gardenia Foods will move its bakery operations from Singapore to Johor Bahru, Malaysia, with 141 staff at its Pandan Loop facility to be retrenched.

The move is part of “ongoing efforts to enhance operational efficiency and maintain competitiveness amid an increasingly challenging global environment”, said Gardenia on Wednesday (May 20).

Production at Gardenia’s Pandan Loop manufacturing facility will cease on Jun 30.

Singapore will remain Gardenia’s central hub for key corporate functions with about 250 employees, said the company. Its Singapore team will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and Health Promotion Board.

Gardenia informed its 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 added that it is also considering eligible employees for suitable roles within the group’s network of operations where possible.

Mainboard-listed parent company QAF fully owns and operates Gardenia in Singapore, while its Malaysia operations are a 50-50 joint venture with Tradewinds.

The Food, Drinks and Allied Workers Union (FDAWU), an affiliate of the National Trades Union Congress (NTUC), was informed in advance, said Gardenia.

“The union worked closely with Gardenia to ensure fair compensation and transition support for affected employees,” the company added. Gardenia said it will also sponsor one year of union membership for affected staff.

FDAWU will connect affected employees to the Labour Movement’s network, such as NTUC’s Employment and Employability Institute (e2i). Singaporeans and permanent residents will be able to use e2i’s job matching services, career coaching and skills upgrading advisory.