Maybank Kim Eng Cut 5% of S’pore Workforce; Affects About 30 People

Last Updated on 2019-12-12 , 8:59 am

Uncertainty.

That’s the reason why civil servants are getting just 0.1 month year-end bonus this year, the lowest since 2009.

But civil servants should be happy since they’re still employed, given that in the public sector, another firm has been hit by a retrenchment that’ll render about 30 people jobless.

Maybank Kim Eng Laid Off 5% of Its Staff in Singapore

Lest you’re confused over Maybank and Maybank Kim Eng, here’s a brief explanation:

Maybank is the Malaysia bank we’re familiar with, while Maybank Kim Eng is a subsidiary of the bank that deals primarily with stockbroking (i.e. the buying and selling of stocks) and investment.

Apparently, the news has been circulated internally to their staff last Friday.

According to The Business Times, 5% of its workforce in Singapore would be laid off. With about 600 employees in Singapore, that would be about 30 people being retrenched.

The reason?

Automation.

Changes in Investment Banking Landscape

When you think of stockbroking, what do you think of?

A person on the phone, saying, “Yes, sell the shares now”?

Well, that’s so 1990s.

Nowadays, everything is automated, including buying and selling of stocks.

People can now sell their Facebook shares with a click of their mouse, and it’s so much faster than calling a remisier to do it for you. Moreover, it’s faster with automation and day/swing traders would know that every second count.

But of course, this is the easy explanation: the chim explanation is “increasing automation and digitalisation of brokerage offerings as well as regulatory changes.”

While 5% of the Singapore workforce would be let go, 3% of its overall workforce would be affected by its restructuring.

The company says to CNA: “The comprehensive restructuring of Maybank Kim Eng’s cost structure and existing operating model will enable Maybank Kim Eng to leverage emerging opportunities in new growth areas.”

In Goody Feed English: “Restructure lah.”

Compensation Packages

According to its CEO, employees who are laid off will “receive compensation packages in line with the law and market practice as well as outplacement advice and referrals.”

As of now, NTUC has yet to issue a response.

And in case you’re not aware, 170 people also lost their job last week when Sasa suddenly closed down all its outlets in Singapore.

I guess the authorities were right after all: we live in a rather uncertain world now.

Better to have no bonus than no job.