Pou Yuen Vietnam, the leading shoe manufacturer in Ho Chi Minh City, is planning to cut 10% of its workforce i.e., nearly 6,000 employees due to a fall in orders. This is the greatest job cut witnessed by the Taiwanese firm, a provider to Adidas and Reebok, since its commencement in Ho Chi Minh City back in 1996.
At the recent meeting with local authorities, the company’s executives declared that, due to a drastic decrease in orders, they were required to scale back the number of their employees.
Since the beginning of 2020, they have implemented various changes in their production plans, including putting employees on leave and transferring them to different factories.
The company will be reducing its staff by 5,744 employees in two phases on June 24 and July 8. The affected personnel will receive a compensatory remuneration that amounts to 80% of their last drawn salary for every year served with the organization.
During the notice period, employees who are not present at work will continue to receive their full salary.
Companies will not lay off any employees who come from disadvantaged backgrounds, are pregnant or on maternity leave, have children under 12 years old, or are disabled. Such people will be provided with job stability and security.
In response to the impact of COVID-19, Pou Yuen cut its workforce significantly in 2020. Specifically, 2,358 personnel were let go in February while more than 2,800 employees were laid off in June. Sectors such as footwear, clothing, construction, and food processing are often impacted by layoffs.
