In Singapore alone, over 3,000 people lost their jobs in Q1 2025 (MOM, April 2025). Major employers such as Apple, Ninja Van, and AWS have all announced cuts. But behind every statistic is a person and behind every retrenchment conversation is a leader navigating the human cost.
The HR function, once in high demand during the pandemic, now faces tighter budgets, fewer entry-level openings, and fierce competition. Many young professionals are hesitating to enter the field at all.
The truth is: layoffs don’t just affect those leaving, they create ripple effects across entire teams. Those who remain often experience anxiety, uncertainty, and even guilt. Leaders are left balancing the commercial realities of the business with the wellbeing of their people.
That’s why how we lead through retrenchment will shape workplace culture for years to come. Compassionate leadership is no longer a “soft skill”, it’s a core business imperative.
If you’re a line manager or HR leader navigating these moments, the 5 pillars below are not just theory, they are a practical framework for leading with both integrity and humanity. Because people may forget what you said, but they will never forget how you made them feel.
The 5 Pillars for Line Managers During Retrenchment
- Empathy & Compassion
- Deliver difficult news with care, dignity, and privacy.
- Create space for employees to express themselves.
- Ensure they feel heard, not simply “informed”.
- Clear & Honest Communication
- Be transparent about the reasons, timelines, and available support.
- Avoid jargon, vague reassurances, or corporate platitudes.
- Trust is built through honesty, even in tough moments.
- Accountability & Presence
- Don’t hide behind process or policy.
- Show up, answer questions, and remain visible.
- True leadership is tested in difficult times.
- Practical Support for Departing Employees
- Connect them with outplacement services, recruiters, or warm referrals.
- Work with HR to ensure fair and respectful offboarding.
- Where possible, advocate for them beyond their time with you.
- Stability & Reassurance for Those Who Remain
- Acknowledge survivor’s guilt and the emotional impact.
- Focus on trust, morale, and clarity about the path ahead.
- Your presence and reassurance matter more than you think.
Context in Financial & Professional Services
The first half of 2025 has been turbulent for both financial and professional services, revealing the human side of every business decision.
- Financial services remain attractive despite volatility. In Singapore, Standard Chartered has cut around 80 roles, mainly in technology and operations, moving these to India as part of a “Fit for Growth” restructuring. HSBC and Deutsche Bank continue their cost-cutting measures, targeting billions in savings.
- Professional services have also felt the impact. Employment in this sector has softened even as Singapore’s total employment rose by 8,400 in Q2, with retrenchments holding steady at around 3,500 (MOM, July 2025).
Why Leadership Choices Now Matter More Than Ever
In short, while the industry grapples with cost pressures, AI-led change, and structural shifts, we must remember that the impact is deeply personal. Every redundancy affects someone’s livelihood, self-esteem, and future plans.
This is the moment when leadership values are laid bare. The tone we set, the space we create for people to process, and the honesty we bring will be remembered long after the meeting room is empty.
Leaders who will be respected in years to come are those who:
- Speak plainly and with kindness.
- Recognise the emotional toll instead of rushing the process.
- Provide tangible career support in sectors where networks are everything.
- Stay present for their remaining teams, knowing silence can erode trust.
As one local HR leader recently reflected: “Singapore’s labour market may be resilient, but the people experiencing restructuring are still human.” The way we lead now won’t just define today’s culture, it will shape trust and loyalty for the future.
If you would like to find out more, please reach out to Sofia Wikho-Ng on sf@elliottscotthr.com