Layoffs Update: This company has announced mass layoffs. In this, the jobs of thousands of people will be affected.
Layoff News: The impact of the global recession is now beginning to affect the Tech Sector as well as different sectors. Vietnam’s largest shoe maker Pou Chen, which makes shoes for brands such as Nike and Adidas, is now going through mass layoffs. According to the APF report, the company has informed that thousands of employees will be laid off by the end of this month due to decreasing orders.
Why the layoffs?
Vietnam is the largest exporter of footwear, clothing and furniture. Due to Recession in America and Europe and inflation, the daily expenditure has increased a lot. People have cut down on the purchase of clothes and shoes. In such a situation, it has affected this industry and the people working in it. Pau Chan Vietnam, a unit of Taiwan’s Pau Chan Group, which makes shoes for brands such as Nike and Adidas, has informed local authorities that the company is about to lay off 6,000 employees. The layoffs will start by the end of this month.
How many people does the company employ
It is worth noting that Pou Chan Group started its unit in Vietnam in the year 1996. From the year 1996 till now, the biggest retrenchment has been done by the company. A total of more than 50,000 people work in it. The company had earlier fired a total of 3,000 permanent employees and 3,000 temporary employees in February 2023.
According to the information provided by the Ho Chi Minh City Labor Department, the reduction in production has been registered due to the low orders received by the company. In such a situation, the company is also reducing the workforce to reduce its expenses. The recession in America and Europe has affected Vietnam’s food processing, clothing, footwear and furniture industries. Last year, Pou Chen sent 20,000 employees on paid leave.
