Borneo Motors, the long-standing authorized distributor for Toyota and Lexus in Singapore, has laid off an undisclosed number of employees as part of a company-wide restructuring. The affected staff were notified on July 30, which served as their final day of employment. The move follows a series of leadership changes at the company’s parent firm, Inchcape Singapore, and reflects broader efforts to streamline operations in a rapidly evolving automotive market.
While the exact number of job cuts remains confidential due to ongoing internal discussions, the company has confirmed that it is working closely with the Singapore Manual and Mercantile Workers' Union to manage the transition. Borneo Motors has pledged to provide retrenchment packages that align with the national Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment, ensuring that affected workers receive fair support and severance benefits.
This restructuring comes at a time when traditional automotive distributors are facing significant pressure. The rise of electric vehicle brands, particularly from China, has intensified competition in Singapore. These newer entrants are often better aligned with the nation's decarbonization goals, forcing legacy distributors to rethink their business models and operational efficiency to remain competitive.
Inchcape Singapore, which oversees Borneo Motors, stated that the changes are necessary to ensure the business remains well-positioned to serve its customers and brand partners. The company is currently navigating a period of transition, including a search for a new managing director following recent departures. For now, the focus remains on supporting the affected employees and stabilizing the organization for future priorities.