Jakarta –
Taiwanese shoemaker Pou Chen Corp will lay off employeeslayoffs) to 6,000 employees in Vietnam by the end of this year. This was done because of a drop in demand for orders.
For the initial stage, the shoe factory, which supplies well-known brands such as Adidas and Nike, will lay off 3,000 factory workers this month. Then the remaining 3,000 will not be renewed until the end of 2023.
“The company will carefully respond to the dynamic changes in the business environment,” said Pou Chen as quoted by Reuters, Tuesday (21/2/2023).
The planned layoffs are inversely proportional to the company’s situation in 2021. At that time, the company experienced a labor shortage and manufacturing disruptions in Vietnam due to the COVID-19 pandemic.
The Southeast Asian country is a global hub for manufacturing where its economy in 2022 will grow rapidly in decades. Economists have warned of a headwind by weakening global demand.
Vietnam’s exports in January 2023 fell 26% compared to the previous year and imports fell 24%. A drop in imports can indicate a contraction in the industry as companies cut purchases of materials and equipment for production.
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(aid/dna)
