Retrenchment can feel like a tough pill to swallow, especially when it happens unexpectedly. While it’s often seen as a last resort for companies under pressure, it can still be deeply unsettling for the individuals affected.
Retrenchment typically occurs when a role is deemed redundant, usually due to cost-cutting measures, restructuring, or shifts in business direction. Even in growing economies, industries may undergo cycles where certain functions become no longer viable.
If you’ve been affected, it’s natural to feel overwhelmed. However, with the correct information and the right mindset, you can regain your footing.
How to tell if your role might be at risk
It helps to stay alert and prepared. Here are some common signs that may indicate your job could be at risk:
1. Your industry or company is under pressure
If your industry is facing headwinds, such as declining demand or increased competition, companies may implement cost-cutting measures. Monitor public statements, press releases, or internal updates for any hints about your organisation’s direction.
2. Internal talk of downsizing is growing louder
Rumours about restructuring or retrenchments can be unsettling. Use your network to verify what you hear — and if needed, speak with your manager for clarification. Regardless of what’s confirmed, it’s wise to keep your resume updated and your options open.
Seeking employment help? Make an appointment to see a career coach to help with your job search.
3. You’re being assigned less work
If your responsibilities are being gradually reduced or reassigned, and your attempts to contribute are repeatedly turned down, it may be time to prepare a backup plan.
4. Company-wide cost-cutting is ongoing
Hiring freezes, lack of bonuses, or prolonged periods without salary increments can signal financial strain. If these measures persist without signs of recovery, consider it a cue to start planning.
5. Your company is going through a merger or sale
Business consolidations often lead to structural changes. If your company has undergone a merger or acquisition, stay informed and be aware that some roles may be impacted during the process.
Your rights if you’ve been retrenched
Losing a job can evoke a range of emotions, from sadness to confusion. While taking time to process is essential, it also helps to know your rights.
If you’ve worked with a company for at least two years, you may be eligible for a retrenchment benefit. The specific amount often depends on your employment contract or union agreements.
For those with less than two years of service, companies are not legally required to provide a payout, though some may offer one as a gesture of goodwill.
How to handle retrenchment in your resume or interview
You may feel anxious about how retrenchment might affect your job search. However, remember that your value as a professional extends beyond your most recent role. Here’s how to show that:
1. Use a functional resume format
This allows you to highlight skills and achievements over job titles and timelines. Focus on what’s most relevant to the job you want next.
2. Showcase transferable strengths
Include both hard and soft skills, such as leadership, project coordination, or problem-solving, even if they come from outside traditional work experiences.
3. Address retrenchment tactfully
You don’t need to go into detail. A simple phrase like “Role made redundant due to company restructuring” is enough. Most hiring managers understand that retrenchments are not a reflection of individual performance.
4. Keep the tone professional during interviews
Be open if asked about your situation, but avoid speaking negatively about your former employer. Focus instead on your skills, experience, and motivation as you move forward.
This isn’t the end — it’s a new beginning
Retrenchment is a challenging experience, but it doesn’t have to define your future. It can be a turning point — a chance to reassess, upskill, and explore new directions. With preparation and support, you can take your next step forward with confidence.
If your financial situation is challenging at the moment, consider tapping the SkillsFuture Jobseeker Support Scheme, which provides temporary financial assistance of up to $6,000 over six months to Singaporeans who are involuntarily unemployed.
The scheme provides temporary financial support, giving you room to focus on your next career move without the added stress of immediate financial pressure. It’s designed to motivate active job searching, engagement in career coaching, and continuous upskilling.
This article is contributed by Jobstreet by Seek.
