One of the largest shoemakers in Vietnam, which produces for Nike and Adidas among others and already cut several thousand jobs at the beginning of the year, will lay off 6,000 workers starting next month due to falling orders, this announcement announced. Saturday a state media.
The communist country in Southeast Asia, one of the world’s largest exporters of textiles, footwear and furniture, is suffering from a cost-of-living crisis affecting its Western clients, who are consuming less than before. Some 6,000 permanent employees of PouYuen Vietnam, owned by Taiwanese Pou Chen, will lose their jobs from the end of next month, the company told authorities, according to the daily VNExpress. “This will be the biggest layoff since PouYuen started operating in Ho Chi Minh City in 1996,” state media said.
Forced license to share work
PouYuen is the largest employer in Ho Chi Minh City, the economic capital of the south of the country, with almost 50,000 employees. In February, the company has already laid off nearly 3,000 permanent employees and another 3,000 temporary employees have not renewed their contracts. At the end of last year, PouYuen forced 20,000 workers on forced leave, due to rotation, to share out the little remaining work.
During the first quarter of 2023, a third of production sites in Ho Chi Minh City experienced a drop in the workforce, according to a survey conducted by the municipality. The slowdown has mainly affected the shoe, clothing, construction and food industries, authorities said. More than 630,000 people lost their jobs or had their working hours reduced in 2022, according to the Vietnam Ministry of Labor.
Source: BFM TV
