Nike, Adidas shoemaker in Vietnam to lay off thousands as demand from West tanks

A prominent shoemaker enterprise in Vietnam, known for manufacturing footwear for globally recognized brands such as Nike and Adidas, has announced its intentions to downsize its workforce by laying off thousands employees owing to low demand. The company attributes this decision to a decline in orders, primarily driven by the ongoing cost-of-living crisis in Europe and the United States, which has resulted in diminished purchasing power among global consumers. PouYuen Vietnam, a subsidiary of Taiwan-based Pou Chen Group, has notified local authorities of its intention to lay off approximately 6,000 workers who hold permanent contracts, as reported by VNExpress. This impending downsizing is expected to be the largest workforce reduction since PouYuen’s establishment in Ho Chi Minh City back in 1996, as highlighted by the state media outlet. Being one of the largest employers in the commercial capital, PouYuen Vietnam currently employs around 50,000 individuals, making this upcoming layoff a significant event within the company’s history. In a similar move back in February, the company took the decision to lay off nearly 3,000 permanent employees, while an additional 3,000 temporary workers had their contracts not renewed. A survey conducted by the labor department of Ho Chi Minh City revealed that one-third of production facilities in the city witnessed a decrease in workforce demand during the first quarter of this year. Officials stated that the impact of the downturn was predominantly felt in industries such as shoes, clothing, construction, and food processing. To mitigate the effects of the challenging situation, PouYuen had already implemented a measure of placing 20,000 of its workers on rotational paid leave last year. According to data from the labor ministry, over 630,000 workers in Vietnam lost their jobs or experienced reduced working hours in the previous year. Read all the Latest News, Trending News,  Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.