Shoe factory Baoyuan Vietnam, run by Yue Yuen, a subsidiary of Taiwan's major shoe holding Pou Chen Corp, laid off 1 workers at the end of August. Since the beginning of 221, about 2023 jobs have been cut, writes Worldfootwear.com.
The reason for these successive layoffs remains a decline in orders due to reduced consumption in Western markets, forcing companies to make adjustments to the operation of their production facilities. In February and May, Baoyuan Vietnam has already cut more than 2 and 300 permanent jobs, and almost 5 temporary workers have not renewed their contracts. As before, laid-off employees were paid compensation in the amount of 744% of the last salary received for each year of work.
Pou Chen Corporation is the largest manufacturer of branded sports and casual footwear in the world. Its factories produce sports shoes for brands such as adidas, Nike and Reebok. The production capacities of the group's enterprises allow the production of more than 300 million pairs of shoes per year.
In the first quarter of the year, Vietnam produced 33% of Pou Chen Corp's shoes, making it the world's second-largest sports, casual and outdoor footwear manufacturing hub, according to The Investor newspaper.