SINGAPORE – In a significant shake-up, at least seven senior executives have announced their departure from Singapore Post (SingPost) in the wake of an extensive restructuring aimed at revamping the company's operations. Reports indicate that some were made redundant, signaling a serious recalibration within the organization.

The flurry of departures became evident through LinkedIn posts on April 1 and 2, following earlier announcements in March. Among those leaving are prominent figures such as the head of strategy and communications Lee Eng Keat, group chief people officer Sehr Ahmed, group chief information officer Noel Singgih, chief sustainability officer Michelle Lee, and chief information security officer Audrey Teoh. Furthermore, Hendrik Liyuwardi, the head of information technology infrastructure and services, and Kim Voraphol A., deputy vice-president of IT project delivery, also conveyed their exits online.

SingPost is in the midst of restructuring to "right-size" and enhance the operational capabilities of its various business units by eliminating redundant roles. A company statement from February revealed that this restructuring would impact approximately 45 positions, predominantly within corporate support sectors, and a limited number from the international business division, reflecting the evolving nature of their roles. The company has faced challenges in reallocating affected employees to alternative positions, stating that all options had been exhausted.

The restructuring response arises from prolonged macroeconomic challenges, including intensified competition, and is not linked to prior incidents surrounding whistleblower reports. Notably, in early 2024, SingPost encountered serious allegations of data falsification within its international business unit, resulting in the dismissal of three senior executives, including group CEO Vincent Phang. All three executives are now contesting their terminations, which suggests potential ongoing legal disputes.

Compounding these challenges, SingPost recently sold its logistics arm, Freight Management Holdings (FMH), for an impressive A$781.5 million (around S$661 million) on March 27. This sale of one of its most profitable assets has led to urgent discussions about a revised business model needed for sustainability, particularly for their domestic postal operations. Shareholders were informed by SingPost chairman Simon Israel that future strategies would involve engaging with the government to secure a viable operational model that guarantees profitability for the domestic postal network.

Market analysts speculate that a government bailout for the struggling domestic postal service could be a necessary measure moving forward, especially in light of SingPost's reported operating losses in the third quarter linked to reduced revenue and rising operational costs.

In an effort to cut expenses and streamline operations, Mr. Israel pointed out that the company is not only reviewing its international logistics but is also in the process of reinforcing its board and appointing a new group CEO. There's also a focus on divestitures, with plans to sell off the SingPost Centre in Paya Lebar and the freight forwarding business, Famous Holdings, both of which are deemed lucrative non-core assets.

Additionally, SingPost is investing in enhancing its infrastructure, with plans underway to upgrade sorting equipment at its Tampines e-commerce parcel facility. This move aims to facilitate domestic mail and small parcel sorting operations—previously managed at the SingPost Centre—as part of a broader strategy to modernize services.

As the company grapples with these significant changes, the stock market reflects a cautious sentiment, with SingPost shares closing at 60 cents on April 2. The coming months will undoubtedly be critical as the company strives to navigate these challenges and redefine its future.

Stay tuned for more updates as this story unfolds!