Taiwan shoemaker Pou Chen to cut 6,000 jobs in Vietnam -sources
21/02/2023 02:19
HANOI, Feb 21 (Reuters) - Taiwan's Pou Chen Corp 9904.TW , the world's
largest manufacturer of branded sports footwear, plans to cut around 6,000 jobs
at its Ho Chi Minh City factory in Vietnam in several phases this year due to
weak demand, two local officials familiar with the company's plans said on
Tuesday.
The firm's Pouyuen Vietnam factory will cut 3,000 jobs this month and not
extend labour contracts for 3,000 other workers later his year, the officials
said, declining to be identified because they were not authorised to speak to
media.
Pou Chen did not immediately respond to a request for comment and telephone
calls to a factory labour union official were not answered.
The Pouyen Vietnam factory, which supplies global companies such as Nike
Inc. NKE.N and Adidas AG ADSGn.DE , is one the largest employers in Ho Chi
Minh City, with 50,500 workers.
The plan to cut jobs marks a reversal for the company that in 2021 faced
labour shortage and manufacturing disruption in Vietnam due to the coronavirus
pandemic.
The Southeast Asian country is a global hub for manufacturing, and its
economy in 2022 grew at the fastest pace in decades, but economists have warned
of headwinds, with weakening global demand starting to impact trade shipments.
Vietnam's exports in January fell 25.9% from a year earlier, while imports
were down 24%. A decline in imports may indicate a future contraction in
industrial production as firms cut purchases of materials and equipment for
production.
(Reporting by Khanh Vu
Editing by Ed Davies)
((khanh.vu@thomsonreuters.com; +84 24 38259623; Reuters Messaging:
khanh.vu.thomsonreuters.com@reuters.net))