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.
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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?