Gardenia retrenchment to affect 141 workers as production moves to Malaysia

The Food, Drinks and Allied Workers Union (FDAWU) and NTUC are stepping in to support 141 employees affected by Gardenia Foods (S) Pte Ltd’s decision to cease production at its Pandan Loop manufacturing facility on 30 June 2026, as the company shifts its bakery operations to Johor Bahru, Malaysia.

The number of workers impacted by the retrenchment exercise was disclosed in a joint media release issued by Gardenia and FDAWU on 20 May 2026.

FDAWU and NTUC were informed of the move in advance, allowing the union to quickly mobilise support measures, including job placement assistance, training opportunities and discussions with the company on fair retrenchment terms.

FDAWU has also tapped its network of unionised companies to identify suitable vacancies for affected workers.

Gardenia said the move was part of ongoing efforts to improve operational efficiency and remain competitive amid a challenging global business environment.

Employees were informed of the decision at an internal meeting on the morning of 20 May 2026, with the company saying affected staff will receive support and notice in line with local regulations and guidelines.

The company added that eligible employees may also be considered for suitable roles within the wider Gardenia group network, where possible.

The union worked closely with Gardenia to ensure fair compensation and support during the transition. Gardenia will also sponsor one year of union membership for existing union members, allowing them to continue accessing career and financial support during the transition.

FDAWU representatives were present at Gardenia’s internal meeting to address questions and concerns from affected union members and to reassure them that the union will continue supporting them.

FDAWU General Secretary Sankaradass S Chami said: “Retrenchment is never easy for workers and their families, but we appreciate that Gardenia engaged FDAWU early before the announcement. This early and constructive engagement gave the union time to work with the company on fair retrenchment terms, identify suitable vacancies and prepare support such as job matching, career coaching and skills training.

"As more companies restructure to stay competitive, we urge employers to take a similarly responsible approach: engage unions early, treat workers with dignity, and put practical support in place before decisions are made public. For the 141 affected Gardenia employees, FDAWU’s immediate priority is to help them move quickly into new opportunities.”

NTUC’s e2i to provide job matching, career coaching and skills support

Affected employees will be connected to the Labour Movement’s support network, including NTUC’s e2i (Employment and Employability Institute).

Singaporeans and Permanent Residents affected by the retrenchment can tap into e2i’s job-matching services, career coaching, and skills-upgrading advisory services.

In the coming weeks, FDAWU will organise on-site jobs and skills training for affected Gardenia workers, such as support with resume writing and interview preparation.

The union will also work with its partners to arrange on-site interviews, with NTUC’s e2i providing career coaching support.

Gardenia’s Singapore headquarters to remain key business hub

While bakery production will move to Malaysia, Gardenia said Singapore will remain its central hub for key business functions.

After the transition, Gardenia will continue to have about 250 employees in Singapore.

Its Singapore team will oversee functions such as brand management, innovation, product development, quality and regulatory oversight, customer and stakeholder engagement, and daily distribution and supply chain operations.

The team will also continue to oversee quality governance and ensure compliance with requirements set by the Singapore Food Agency and the Health Promotion Board.

Gardenia retrenchment adds to recent Singapore job cuts

Gardenia’s announcement comes amidst heightened attention on retrenchments and restructuring exercises in Singapore.

Official data shows that retrenchments in Singapore remain low and broadly stable.

In its Labour Market Advance Release for the first quarter of 2026, the Ministry of Manpower said there were 3,700 retrenchments in 1Q 2026, similar to 3,690 in 4Q 2025, with most due to business reorganisation or restructuring.

Gardenia joins a recent cluster of high-profile job cuts and business restructuring cases.

In March 2026, Asia Pacific Breweries Singapore, a wholly owned subsidiary of Heineken, said it would phase out large-scale brewing operations here and axe about 130 roles as production shifts to Malaysia and Vietnam.

That same month, food and beverage company Yeo Hiap Seng announced a layoff of 25 employees at its Senoko facility in order to shift its can manufacturing operations to Malaysia.

Other recent cases include layoffs at DHL Global Forwarding Singapore, JLL Singapore, and Amazon Singapore, as companies restructured operations or shifted their business focus.

The closure of Twelve Cupcakes in October 2025, which left close to 80 workers unpaid, also underscored the impact of sudden business closures on workers, particularly in consumer-facing sectors.

Gardenia is a wholly owned subsidiary of Singapore-listed QAF Limited, which acquired the company in 1985.

The group has since expanded its bakery operations across the Asia-Pacific region, including Malaysia, the Philippines and Australia.

Revenue for QAF’s FY2025 has increased over the last five years, but FY2025 was slightly down year-on-year from S$636.1m to S$633.6m.

Its FY2025 earnings before interest, taxes, depreciation and amortisation (EBITDA) recovered strongly year-on-year from S$59.6m to S$69.7m.

Besides Gardenia, QAF’s other bakery brands include Bonjour and Bakers Maison.

The group’s bakery segment EBITDA fell from $58.2m in FY2024 to $48.2m in FY2025.

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