Taiwanese shoe maker Pou Chen to continue layoffs at factories in Vietnam
Amid declining orders, Taiwanese footwear manufacturer Pou Chen, which produces for brands such as Adidas, Nike, and Reebok, announced another massive layoff at its Vietnamese factories – 5,774 jobs, or 10% of its workforce. According to local media, this is the largest layoff at the Taiwanese company since it began operations in Ho Chi Minh City in 1996, Worldfootwear.com reports.
The company's management intends to carry out the dismissal of workers in two batches, namely on June 24 and July 8. Dismissed employees will be compensated in the amount of 80% of their last salary received for each year worked.
Decline in orders due to reduced consumption in Western markets has prompted the company to adjust production plans from late 2022 by closing lines, laying off workers and reallocating them between factories. In fact, the latest news follows the first wave of layoffs that occurred in February this year, when 2300 jobs were cut and almost 3000 temporary workers' contracts were not renewed.
Pou Chen Group is the largest manufacturer of branded sports and casual footwear in the world. The production capacities of the group's enterprises allow the production of more than 300 million pairs of shoes per year. The Vietnam branch of Pou Chen has become another victim of the global economic downturn. Job cuts in Vietnam occur not only in the footwear sector, but also in the clothing, construction and food industries.
Taiwanese footwear maker Pou Chen, which manufactures products for brands like adidas, Nike and Reebok, has announced another massive layoff of workers at its...
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