Adidas, Reebook supplier to sack 6,000 workers

By Le Tuyet   May 13, 2023 | 04:59 am PT
Adidas, Reebook supplier to sack 6,000 workers
Workers of Pou Yuen Vietnam leave work in October 2021. Photo by VnExpress/Thanh Nguyen
Footwear maker Pou Yuen Vietnam, the largest employer in HCMC, will lay off nearly 6,000 workers, or 10% of its workforce, amid a decline in orders.

This is the biggest layoff of the Taiwanese company, a supplier to Adidas and Reebok, since its operation in HCMC in 1996.

At a recent meeting with city authorities, the company's management said with orders plummeting their factories are forced to reduce staff.

Since the end of last year they have been adjusting production plans, furloughing workers rearranging them between factories.

They expect to lay off 5,744 workers in two batches on June 24 and July 8. The discharged staff will be paid compensation at the rate of 80% of their last drawn salary for every year they worked.

During the notice period, workers not coming to work will still be paid full wages.

Workers who are pregnant, on maternity leave, having kids under 12 years, from poor households, disabled, and facing other disadvantages will not be laid off.

Pou Yuen had laid off 2,358 workers in February and over 2,800 in June 2020 just after Covid broke out.

Layoffs are also happening in many other companies due to the bleak economic situation.

A survey by the city Department of Labors, Invalids and Social Affairs of 4,000 firms in Q1 found 31% had reduced their workforce and only 19% increased it.

Layoffs often occur in sectors like footwear, garments, construction, and food processing.

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