HANOI (Reuters) -Taiwan’s Pou Chen Corp, the world’s largest maker of branded sports activities footwear, plans to chop round 6,000 jobs at its Ho Chi Minh City plant in Vietnam attributable to weak demand, two native officers aware of the corporate’s plans stated on Tuesday.
The agency’s Pouyuen Vietnam manufacturing facility will minimize 3,000 jobs this month and never lengthen labour contracts for one more 3,000 employees later this 12 months, the officers stated, declining to be recognized as a result of they weren’t authorised to talk to media.
The Pouyen Vietnam manufacturing facility provides international firms comparable to Nike Inc (NYSE:). and Adidas AG (ETR:) and is one the most important employers in Ho Chi Minh City, with 50,500 employees.
Pou Chen stated the Vietnam manufacturing facility deliberate to chop not more than 3,000 workers within the newest spherical of layoffs amid uncertainty over the macroeconomic outlook, and the affect on operations could be restricted.
“The company will prudently respond to the dynamic changes in the business environment,” Pou Chen stated in a submitting to the Taiwan bourse.
Pou Chen shares fell 1.2% in early afternoon commerce in Taiwan in a broader market that was down simply 0.1%.
Telephone calls to a manufacturing facility labour union official weren’t answered.
The plan to chop jobs marks a reversal for the corporate that in 2021 confronted a labour scarcity and manufacturing disruption in Vietnam as a result of coronavirus pandemic.
The Southeast Asian nation is a world hub for manufacturing, and its economic system in 2022 grew on the quickest tempo in many years, however economists have warned of headwinds, with weakening international demand beginning to affect commerce shipments.
Vietnam’s exports in January fell 26% from a 12 months earlier, whereas imports have been down 24%. A decline in imports could point out a future contraction in industrial manufacturing as corporations minimize purchases of supplies and tools for manufacturing.