Vietnam shoemaker for Nike, Adidas cuts 6,000 jobs amid cost-of-living crisis in US and Europe
- One of the world’s largest exporters of clothing and footwear, the country has been badly affected by the shrinking buying power of overseas consumers
- PouYuen Vietnam, a unit of Taiwan-based Pou Chen Group, says it will lay off almost 6,000 workers with permanent contracts from the end of next month
One of Vietnam’s largest shoe manufacturers for brands such as Nike and Adidas will cut thousands of workers at the end of next month, blaming a slump in orders, state media said on Saturday.
The country is among the world’s largest exporters of clothing, footwear and furniture, but has been badly affected by the cost-of-living crisis in Europe and the United States, with the buying power of worldwide consumers shrinking.
PouYuen Vietnam, a unit of Taiwan-based Pou Chen Group, told local authorities it would lay off almost 6,000 workers with permanent contracts from the end of next month, VNExpress reported.
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Inflation in the West forces Vietnam factory lay-offs
“This will be the biggest lay-off since PouYuen started its operation in Ho Chi Minh City in 1996,” the state media outlet said.
The firm is among the commercial capital’s largest employers, with an estimated 50,000 workers.
But it made a similar move in February letting go almost 3,000 permanent staff, and a further 3,000 temporary employees did not have their contracts renewed.
A third of production facilities in the city experienced reduced workforce demand in the first quarter of the year, according to a survey by Ho Chi Minh City’s labour department.
