Creative Technology cuts 14 per cent of workforce
As it seeks to get out of the red.
Singapore's Creative Technology has retrenched 40 employees, according to a Straits Times report this afternoon.
This represents 14 per cent of its workforce of around 280, itself a significant reduction from its heydays.
Not the same as tech layoffs
To be clear, this retrenchment differs from the global wave of tech firm layoffs, which stem from over-hiring during Covid and increased pressure to improve profitability.
According to the Straits Times, for the six months ending Dec 31, 2024, Creative’s net loss widened to US$6.1 million (S$8.1 million) from US$4.1 million the year before.
Clearly, Creative needed to get back into financial shape.
SXFI sound
Creative founder Sim Wong Hoo passed away unexpectedly in 2023, and it might be argued that the company has floundered without him at the helm.
When I met Sim a few years ago at the launch of the SXFI Amp in 2018, he told me how he never liked headphones because they sounded too "enclosed" to him.
You can say he created the SXFI technology for himself, pushing his vision to fruition - and creating a new product category in the process.
SXFI is a spatial holography tech that recreates the effects of multiple speakers using headphones. And yes, it is a life saver on long-haul flights.
Engineering is safe
I first caught wind of retrenchment plans last month. Though I was saddened, I wasn't surprised. I understand that this is a one-time workforce reduction.
Though I haven't been tracking Creative's market performance, I've noticed the large number of very similar products being released, many at bargain basement prices.
From my quick asking around, those who were let go appear to be from sales and marketing. Engineering is more or less untouched.
Hopefully, the changes, while painful, will set the stage for a turnaround.
Have you used products from Creative? Which is your favourite?