Singapore-based logistics provider Ninja Van has announced a reduction in its workforce, impacting approximately 5 percent of its employees in Singapore. The move comes as part of a broader strategic realignment aimed at diversifying beyond e-commerce to bolster long-term growth.
In a statement to Channel News Asia (CNA), a Ninja Van spokesperson explained that the decision was driven by the need to adapt to the competitive landscape of Southeast Asia’s e-commerce sector. “We recognize the need to diversify beyond e-commerce to ensure the organisation’s long-term growth,” the spokesperson said. “In line with the group’s direction, we have reviewed the roles within the organization to assess their alignment with our future needs.”
Ninja Van, which was founded in Singapore in 2014 and has expanded its operations across Southeast Asia, had previously announced layoffs affecting about 10 percent of its regional tech team in April. This recent round of job cuts primarily affects Singapore, though the company did not specify the exact number of workers impacted or the specific roles that have been eliminated.
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The latest retrenchment comes as a significant blow, given the timing shortly before Labour Day, a period traditionally associated with recognizing the contributions of workers. The National Trades Union Congress (NTUC) expressed its dismay over the timing of the layoffs. The NTUC-affiliated Supply Chain Employees’ Union (SCEU) noted that Ninja Van, while not unionized, had informed the union in advance of the impending layoffs.
The company has been proactive in supporting affected employees through the transition. According to the spokesperson, those impacted by the layoffs will receive a “reasonable severance package,” which includes one month of severance pay for each full year of employment and garden leave until their last working day. The severance package also includes career transition support, access to the company chat and office facilities for handovers, and an extension of the deadline for exercising vested options from 30 days to a year.
Moreover, affected employees will continue to have access to medical insurance and mental health support until December 31. These measures are intended to help ease the transition for those affected by the layoffs and provide them with the necessary support during this period of change.
Photo: Ninjavan, File photo of vehicles belonging to Ninja Van
In addition to the job cuts, Ninja Van has announced an expansion into new logistics verticals, including B2B (business-to-business) restock and cold chain logistics. This strategic shift leverages the company’s existing e-commerce infrastructure and tech-enabled logistics solutions. The move is part of Ninja Van’s broader strategy to diversify its service offerings and tap into new growth opportunities within the logistics sector.
Despite the company’s efforts to minimize the impact of the layoffs, the decision has been met with some criticism and concern, particularly regarding its timing and the impact on employees. The layoffs reflect the broader challenges facing the logistics industry as companies navigate a rapidly evolving market and seek to align their operations with emerging trends and demands.
As Ninja Van continues to adapt to the changing landscape of the logistics sector, the company’s focus on diversification and expansion into new areas of logistics highlights its commitment to long-term growth and sustainability. However, the recent layoffs underscore the ongoing pressures and challenges within the industry, as companies strive to balance operational efficiency with the needs and well-being of their workforce.
The company’s proactive approach to supporting laid-off employees, including severance packages and extended benefits, aims to mitigate the impact of the job cuts and provide a smoother transition for those affected. As Ninja Van navigates this period of change, the logistics industry will be closely watching how the company’s strategic adjustments shape its future and influence broader trends within the sector.
