Panasonic is laying off 700 employees in Singapore because it will cease producing refrigeration compressors by September 2022.

According to Panasonic’s news statement released on September 23, in order to guarantee that all impacted workers are “well-supported”, they have been collaborating with the relevant authorities, government agencies and United Workers of Electronics and Electrical Industries (UWEEI).

The company is also aiding them in finding jobs.

Panasonic will retain around 1,400 employees in Singapore, where it has its Asia-Pacific headquarters.

The firm stated that the decision was taken “in light of the difficult global economic environment and in light of Panasonic’s long-term strategic assessment of its refrigeration compressor business portfolio.”

Panasonic will concentrate its compressor production activities at its current Malacca and Wuxi plants in Malaysia and China, respectively. The firm’s casting business will be headquartered in Malacca.

The company stated in a media statement that Panasonic Appliances Refrigeration Devices Singapore has built a reputation as one of the world’s leading refrigeration compressor manufacturers over the course of 49 years in Singapore by manufacturing energy-efficient inverter compressors for refrigerators, water coolers, and vending machines.