Taiwanese footwear manufacturer Pou Chen are the latest casualties of the global economic downturn. They have today announced the reduction of 10 percent of their workforce, approximately 5,570 jobs.
The company began operating in 1996 and is one of the largest employers in Ho Chi Minh City. Pou Chen supplies products for global brands including Nike, Adidas and Reebok.
Reduced consumption in Western markets has led to a steady decline in orders since late 2022 and forced the company to adjust production plans by closing lines, furloughing workers and reorganising factory schedules.
The announcement follows a wave of lay-offs that took place in February this year, where 3,000 temporary workers did not see their contracts renewed and nearly 2,300 job cuts were made.
Lay-offs will take place in two batches, on June 24 and July 8. Discharged staff will be paid compensation at the rate of 80 percent of their last drawn salary for every year they worked
Job cuts are happening not only in the footwear sector but also in clothing, construction and the food industry. A survey of 4,000 Vietnamese companies carried out by the city's Ministry of Labour, Invalids and Social Affairs shows that 31 percent have reduced and only 19 percent have increased their workforce.
