Borneo Motors, the Singapore distributor for Toyota and Lexus vehicles, announced layoffs as part of a broader restructuring exercise on July 30. The company, a subsidiary of global automotive distributor Inchcape, has not disclosed the exact number of employees affected amid ongoing discussions.

An Inchcape spokesman stated that the company conducted a review of its Singapore operations to better position itself to meet customer and brand partner expectations. The restructuring is intended to streamline operations and align the business with current market demands and future priorities.

Borneo Motors is represented by the Singapore Manual and Mercantile Workers’ Union (SMMWU). The union was notified prior to the implementation of the restructuring, and affected staff were reportedly informed on the day layoffs took effect, which also served as their final day of employment. SMMWU’s secretary-general Andy Lim confirmed that the union coordinated with the company to ensure the severance packages offered met the terms of their collective agreement. Lim emphasized the importance of early communication between employers and workers during such exercises, noting that timely engagement allows unions and agencies like the National Trades Union Congress (NTUC) to provide better support to those impacted.

According to the collective agreement, Borneo Motors is required to give the union one month’s notice before laying off staff, while employees are entitled to two months’ notice or payment in lieu. Severance compensation includes one month’s basic salary for every year of service, up to a maximum of 25 years. Sales personnel receive a slightly different calculation, with $4,000 for each completed year of service, also capped at 25 years.

Following the notification of affected employees on July 30, the company held a town hall meeting the same afternoon to confirm the restructuring but did not specify how many staff members had been let go. Several employees who spoke anonymously on July 31 said they had yet to receive details on adjustments to their roles, such as changes in reporting structure or responsibilities. However, the invitation to the meeting was seen as a sign that their positions were relatively secure for the time being.

The Taskforce for Responsible Retrenchment and Employment Facilitation, a body involving the Ministry of Manpower, Skills and Workforce Development Agency, NTUC, and the Employment and Employability Institute, is collaborating with Borneo Motors and SMMWU to assist affected workers. A spokesman for the task force confirmed that Borneo Motors committed to providing retrenchment packages aligned with the Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment.

This restructuring at Borneo Motors follows several leadership changes at Inchcape Singapore in recent months. Inchcape operates one of the largest multi-brand motor franchises in the country, alongside Cycle & Carriage and Wearnes Automotive. The move comes amid increasing competition in Singapore’s automotive market, particularly from Chinese electric vehicle brands that align closely with the national agenda to decarbonize transport and expand market share.