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Surbana Jurong: Navigating Organisational Challenges in a Mass Termination
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In January 2017, Surbana Jurong Private Limited, a wholly-owned infrastructure consultancy of Singapore's Temasek Holdings, came under the spotlight for terminating 54 of its Singapore-based employees. Surbana Jurong said this was part of a performance review. However, the mass termination raised concerns that the company was retrenching workers under the banner of poor performance so that it wouldn't have to pay additional compensation to its former employees. According to Surbana Jurong, the mass termination was not a retrenchment exercise, but "rather, a small number of poor performers were communicated with and released." The termination episode drew negative reaction from the trade unions and the public, an open rebuke from the Manpower Minister, and a subsequent public commitment from Surbana Jurong to improve its performance management processes. What lessons could Surbana Jurong draw from this episode?