SINGAPORE : Singapore Airport Terminal Services Ltd on Wednesday
said it was laying off 108 staff as it restructures to cut costs in
the face of increased competition.
The company, the ground handling unit of Singapore Airlines Ltd,
said it would also accelerate its outsourcing programme in its
airport services and inflight catering divisions to cover 1,064
positions.
Advertisement
Affected employees are being offered the choice of working with the
contract labour service providers or being released from
employment.
SATS currently uses slightly more than 2,000 contract workers,
comprising 19 percent of its total workforce.
SATS President and Chief Executive Officer, Ng Chin Hwee, said:
"Since early this year, in anticipation of the increased
competition, SATS has been restructuring, initially at the
executive levels. Today, we have made the painful decision to
restructure our workforce further.
"Retrenchment is an option of last resort, and we are sorry to have
to make these changes, but they are necessary to ensure that we are
positioned for the new competitive landscape."
The restructuring exercise will incur a one-time cost of around $28
million in the current financial year and is expected to derive
annual cost savings of around $20 million going forward.
SATS move follows a move by its parent, SIA, earlier this week to
lay off 70 staff in its Finance Division. - CNA
SATS restructuring?