Ninja Van downsizes tech team in S'pore and the region, workers laid off

Source: The Straits Times
Author: Sue-Ann Tan

SINGAPORE - Singapore logistics company Ninja Van Group has laid off around 10 per cent of its tech team, the company said on April 30.

In reply to queries from The Straits Times (ST), a spokesperson said: "Cost optimisation has always been an ongoing lever to ensure Ninja Van Group's sustainable growth.

"In line with the Group's direction, our Tech department has been actively implementing cost-control measures, including infrastructural reorganisation and outsourcing."

The spokesperson said that following a recent cost evaluation, the company decided that "less than 10 per cent of the region's tech team is no longer required".

Ninja Van did not reply to ST's queries on the number of workers affected, but ST understands that 21 people were laid off, which amounts to about 10 per cent of the entire tech team in the region, or 20 per cent of the tech team that are based in Singapore.

The spokesperson said that the affected employees have received a reasonable severance package: As part of the package, affected staff are given one month of severance pay per full year of employment. They are also provided with job placement support.

They are also kept in the company chat and given office access till the end of the week to facilitate proper farewell, the spokesperson said.

They also have garden leave until their official last day which is May 31. Their medical insurance and mental health support benefits have also been extended to June 30.

For those with unvested share options, their deadline for exercising vested options extended from 30 days to a year.

In an email to a Ninja Van employee seen by ST, the company said on April 29 that layoffs are "an absolute last resort" and that it has done all it can to cut costs across the organisation but it wasn't enough.

The email added that it is not about cutting the size and capability of the tech team, but optimising the cost of it.

It also noted that tech is critical in driving the company's success and that the firm remains upbeat on the long term outlook.