S’pore’s Creative Technology cuts staff by 14% in a bid to “ensure long-term success”

S’pore’s Creative Technology cuts staff by 14% in a bid to “ensure long-term success”

  • 18.03.2025 06:39
  • vulcanpost.com
  • Keywords: Layoffs, Restructuring

Singaporean tech company Creative Technology has cut its workforce by 14% across departments like marketing and sales as part of a restructuring to adapt to market changes. Despite an 18% rise in sales, the company reported widening losses, reflecting broader challenges faced by global tech firms amid economic uncertainties.

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Estimated market influence

Creative Technology

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Analyst rating: N/A

The company is restructuring and laying off 14% of its workforce, which has a negative impact on employment.

Meta

Meta

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Analyst rating: Strong buy

Meta announced layoffs affecting at least 12 staff members in Singapore, contributing to the broader trend of tech company layoffs.

Context

Analysis and Summary: Creative Technology Staff Cuts and Market Implications

Key Facts and Data Points

  • Staff Reduction: Creative Technology announced a 14% staff cut, impacting departments like marketing and sales.
  • Global Workforce: The company employs over 280 people worldwide.
  • Market Context: This restructuring is part of adapting to evolving market conditions, with a focus on long-term sustainability.

Financial Challenges

  • Net Loss Increase: For the first six months of FY 2024 (ending December 31, 2024), net loss widened to S$8.1 million, up from S$5.4 million in the same period last year.
  • Sales Growth: Despite the loss, net sales increased by 18%.
  • Warning on Tariffs: The company flagged potential inflationary pressures and reduced consumer demand due to import tariffs and retaliatory measures.

Market Trends

  • Global Tech Layoffs: Creative Technology’s cuts are part of a broader trend. In 2024, 549 tech companies globally laid off over 152,000 employees, with 23,000 jobs cut so far in 2025.
  • Singaporean Impact: Other major firms like Meta and Twitter have also reduced their workforce in Singapore, affecting local employees.

Competitive Dynamics

  • Declining Market Presence: Creative Technology has seen a significant drop in market presence since its peak in the 2000s.
  • Strategic Restructuring: The company is focusing on streamlining operations to achieve long-term growth and sustainability.

Long-Term Effects

  • Sustainability Focus: The restructuring aims to build a stronger, more sustainable business model for future success.
  • Employee Support: Creative Technology emphasized support for affected employees, aligning with Singapore’s Manpower Ministry guidelines.

Regulatory and Industry Implications

  • Financial Reporting: Despite meeting financial entry criteria, the company remains under watch due to its widening net loss.
  • Global Trade Risks: Tariffs and trade tensions pose ongoing risks to consumer demand and supply chains.

Conclusion

Creative Technology’s staff cuts reflect broader industry trends of restructuring amid financial challenges and evolving market conditions. While the company aims for long-term sustainability, it faces significant competitive and regulatory hurdles in a global tech landscape marked by uncertainty and volatility.