Shoe maker PouYuen to cut thousands of jobs

Major Vietnamese shoe maker PouYuen Vietnam, which makes sports shoes for the likes of Nike and Adidas, is to cut thousands of jobs again as the company receives far fewer orders. So reports Vietnamese media. PouYuen, part of Taiwan-based Pou Chen Group, is the largest employer in Ho Chi Minh City, Vietnam’s commercial centre, with about 50,000 employees.

As a result, 6,000 jobs will be lost at the company based in Ho Chi Minh City, formerly Saigon. In February, it was also announced that 6,000 jobs were going to disappear. Due to high inflation and economic uncertainty, people are buying fewer sports shoes from the likes of Adidas and Nike.

PouYuen attributed the move to a decline in orders, while the firm had already reduced the working hours of 20,000 staff since the end of 2022 and furloughed 2,358 in February.

The downsizing is equivalent to over 10% of its workforce before the Covid-19 pandemic and is considered the biggest cutback since its establishment in HCMC in 1996.

Hit hard by high inflation

In a meeting with local authorities, the company affirmed it would not dismiss workers who are pregnant, people with disabilities, and laborers with children under 12 months old unless they are willing to resign. It will also provide full compensation for workers.

Vietnam is one of the world’s largest exporters of clothing, footwear and furniture and is therefore hit hard by high inflation in major markets such as Europe and the United States. Consumer purchasing power in other parts of the world is also under pressure from inflation.