Covid-19: BreadTalk to temporarily slash executive pay across its Asian operations

SINGAPORE — Homegrown bakery chain BreadTalk Group on Tuesday (March 24) announced temporary pay cuts, ranging from 10 to 50 per cent, for middle and senior management staff across its operations in China, Hong Kong, Singapore and other Southeast Asian countries.

The latest cost-saving measures — which come after earlier moves such as no-pay leave and shorter operating hours — are subject to the consent of the affected employees, and would save the firm about S$1.56 million a month as it seeks to navigate the Covid-19 crisis.

In a statement to the Singapore Exchange, the listed company said that from March till June, senior management face a pay cut of between 30 and 50 per cent, while those in middle management in the Association of Southeast Asian Nations region — including those in Singapore — face a reduction of between 10 and 15 per cent to their pay.

It added that from February till June, employees in mainland China and Hong Kong will face a pay cut of between 30 and 50 per cent. 

The homegrown company said that the Covid-19 pandemic has “given rise to uncertain market conditions and rapidly changing business conditions”.

It added that the pay cuts were being proposed only after taking other measures which include the implementation of no-pay leave, shorter operating hours, controlled overtime hours, as well as ceasing business-related travel and entertainment activities for its employees.

The measures taken will impact about 137 employees in the Asean countries, including Singapore, and save the BreadTalk Group some S$177,000 per month.

At the same time, about 1,840 employees in mainland China and Hong Kong will be affected by the cost-cutting moves, which are expected to save the company some S$1.38 million per month.

Last month, BreadTalk Group chairman and founder George Quek announced plans to delist the company from the Singapore Exchange. The group posted a net loss of S$5.2 million for 2019, compared with a net profit of S$15.2 million in 2018.