Another round of lay-offs at Pou Chen in Vietnam
The Baoyuan Vietnam shoe factory, which is run by Yue Yuen, a subsidiary of Pou Chen Corp, has laid off 1 221 people at the end of August. Since the beginning of 2023, around 10 000 jobs have been cut
The decrease in orders due to reduced consumption in Western markets, which led the factories to adjust its production capacity, remains the cause of these successive lay-offs. In February and May, the company had already cut more 2 300 and 5 744 permanent jobs and nearly 3 000 temporary workers did not see their contracts renewed. As previously, the discharged staff was paid compensation at the rate of 80% of their last drawn salary for every year they worked.
From the Baoyuan factory's viewpoint, the impact of these cuts is relatively limited to the overall performance of Pou Sheng, the manufacturing subsidiary of Yue Yuen. According to the newspaper TheInvestor, Vietnam produced 33% of Pou Chen Corp's footwear in the first quarter of the year, making it the second-biggest production hub of athletic, athleisure, casual and outdoor footwear worldwide.
Image Credits: businessoffashion.com
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