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 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.
“This will be the biggest layoff 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.
The downturn mostly impacted shoes, clothing, construction and food processing industries, officials said.
PouYuen put 20,000 of its workers on paid leave in rotation last year.
More than 630,000 workers lost their jobs or had their hours cut in Vietnam last year, according to the labour ministry.