One of the largest shoe manufacturers in Vietnam for large global brands, such as Nike either adidaswill lay off some 6,000 workers between the months of June and July due to the massive drop in orders, local media reported this Saturday.
The cuts planned for the coming months are due to the decrease in orders and consecutive “settings” in the production plans of Pou Yuen, a Vietnamese subsidiary of the Taiwanese group Pou Chen and the largest company in Ho Chi Minh City, according to the VNExpress news portal.
The layoffs, which represent more than 10% of the total workforce, made up of some 50,500 employees, are added to another 2,300 workers who lost their jobs last February, also due to the reduction in production.
Company representatives explained in a meeting with local authorities that the number of new orders has plummeted since last year, forcing factories to reduce labor as well, according to VNExpress.
In addition, since then the company has had to “adjust your production plan” and taking a series of measures, including arrangements for workers to take rotating vacations and voluntary resignation agreements.
According to the company, the resigned workers will continue to be paid until they receive unemployment benefits from the government.
This is considered the biggest layoff of staff since Pou Yuen began operations in the Vietnamese city in 1996.
Vietnam, one of the largest exporters of clothing, footwear and furniture in the world, has been severely hit by the increase in the cost of living in the main markets of the United States and Europe, where factors such as the covid or the war in Ukraine caused that the purchasing power of consumers collapsed.
Source: EFE
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
