Singapore-based electronics company Creative Technology has laid off about 40 employees, representing 14% of its workforce.

The company noted that the layoffs affected multiple departments, including sales and marketing.

With over 280 employees currently, Creative has reduced its workforce significantly since its peak in the early 2000s.

Creative is facing financial challenges, with a net loss of US$6.1 million for the first half of its fiscal year ending Dec. 31, 2024. This is compared to a loss of US$4.1 million in the previous year.

This occurred despite an 18% increase in net sales, reaching US$37.4 million, primarily due to new audio products.

Known for its Sound Blaster sound card and historical contributions to portable MP3 players, Creative has seen a decline in its market presence in recent years.

The company is currently seeking a new chief executive following the retirement of Song Siow Hui in February 2025. Song took over after the death of founder Sim Wong Hoo in January 2023.