In one of the largest downsizing exercises to hit the motor industry in the recent times, vehicle distribution giant Inchcape is planning to restructure operations in the country. As a part of the plan, the retrenchment activity will commence in the following weeks to layoff 120 employees from Toyota agent Borneo Motors and Suzuki agent Champion Motors.

This cohort represents 2 per cent to 14 per cent of Inchcape’s headcount in Singapore, Straits Times reports. Mr Koh Ching Hong, Inchcape’s chief executive for South Asia and managing director of Borneo Motors also plans to resign towards the end of next month. These retrenchments in the industry come amidst a gloomy outlook.

Manpower Ministry figures show that 12,010 workers were retrenched in the first three quarters of this year. This news comes as a surprise to the industry observers, given Inchcape’s profitability in Singapore and its record sales. Also Borneo Motors has been consistently topping the sales charts in the recent years.

According to observers, this move could be a part of Inchcape’s strategy to prepare ahead of time for the economic headwinds in a climate of uncertainty.

The Straits Times understands that the restructuring will also involve moving finance and IT functions out of Singapore. Inchcape will be trimming staff in other markets too, but Singapore is bearing the brunt of the exercise. The parent company in news was not available for comment.