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

Singaporean multinational electronics company Creative Technology, also known as Creative Labs, has retrenched about 40 staff, or 14% of its workforce, The Straits Times reports.

The job cuts have impacted several departments, including marketing and sales, though the company did not disclose the number of affected employees and whether they were based in Singapore.

Currently, Creative Technology employs more than 280 people worldwide, which is reportedly only a fraction of its workforce size compared to its peak years in the 2000s.

According to a spokesperson, the layoffs were carried out as part of the company’s decision to restructure certain areas of its business in order to “adapt to the evolving market conditions.”

“The decision was not taken lightly,” he added, stating that the company would support affected employees through the exercise, which was carried out in line with the Manpower Ministry’s guidelines.

We believe this restructuring will allow us to build a stronger, more sustainable future; one that ensures long-term success for our company, our employees and the customers we serve. We are committed to working to get Creative back on a sustainable trajectory ahead.

Widening losses

Creative Technology was founded in 1981 by Sim Wong Hoo, who was known to be one of Singapore’s most famous technology entrepreneurs.

It became the first Singaporean company to be listed on the NASDAQ stock exchange and gained recognition for its Sound Blaster sound cards as well as other digital entertainment products.

However, the company has seen a decline in market presence in recent years and is facing financial challenges.

For the first six months of its fiscal year, which ended on December 31, 2024, its net loss widened to S$8.1 million, up from S$5.4 million in the same period last year. This occurred despite the company achieving an 18% increase in net sales.

In November 2024, Creative Technology gave notice that it had recorded pre-tax losses for three consecutive years, but it had still met the financial entry criteria to avoid being placed on SGX’s watch list.

The company also warned that uncertainty surrounding the import tariffs imposed by the Trump administration, as well as potential retaliatory measures from affected countries, could heighten inflationary pressures and impact consumer demand for its products.

Global tech layoffs

Creative Technology’s announcement is the latest in a series of layoffs by tech firms that have impacted employees both in Singapore and globally in recent years.

According to layoffs.fyi, 549 tech companies laid off over 152,000 employees in 2024, and more than 23,000 jobs have already been cut worldwide so far this year.

Just last month, TikTok laid off several employees from its Trust and Safety department as part of a global effort to streamline operations for long-term growth, which affected at least 12 staff members in Singapore.

Meta also recently announced a reduction in its workforce as the tech giant positions itself for “an intense year”—several staff members in Singapore have already been notified of their retrenchment.

Feature Image Credit: Zulkifli Jamil via Reuters