Vietnam shoe maker for Nike, Adidas to chop 6,000 jobs » Borneo Bulletin On-line

HANOI (AFP) – One in all Vietnam’s largest shoe producers for main manufacturers akin to Nike and Adidas will reduce 1000’s of employees on the finish of the month because of a droop in orders, in response to native authorities.

PouYuen Vietnam will lay off 3,000 manufacturing unit employees and won’t renew the contracts of three,000 others due to “only a few manufacturing orders in 2023”, in response to a Ho Chi Minh Metropolis labour division doc obtained by AFP yesterday.

Vietnam, one of many world’s largest exporters of clothes, footwear and furnishings, has been badly affected by the cost-of-living disaster in main markets in Europe and the US (US), with the shopping for energy of worldwide customers plunging.

PouYuen is industrial capital Ho Chi Minh Metropolis’s largest employer, with round 50,000 staff.

“The corporate has informed the employees’ union that in February it plans to chop 3,000 employees… and it’ll count on to make an announcement to these employees on 25 February,” the doc stated.

Manufacturing unit employees will proceed to be paid till they obtain unemployment advantages, in response to the doc.

The lay-offs come after PouYuen put 20,000 of its employees on paid depart in rotation on the finish of final yr. Greater than 630,000 employees misplaced their jobs or had their hours reduce in Vietnam in 2022.

Within the closing quarter of 2022, orders had been down 30 to 40 per cent from the US and 60 per cent from Europe, in comparison with the earlier yr, in response to the Vietnam Common Confederation of Labour.