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Thursday, July 25, 2024

MWG lays off thousands of workers in Q1

The Saigon Times

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HCMC – Weak consumption led Mobile World Investment Corporation (MWG) to cut almost 6,000 jobs between January and March, marking the second consecutive quarter of its mass layoffs.

MWG’s financial statement in the fourth quarter of 2022 showed that its workforce had been reduced to just over 73,200 employees, meaning that the company had cut over 7,000 employees, or 4% of its workforce, in just three months.

Overall, MWG has laid off 13,000 employees over the last six months, bringing its workforce back to the end-2021 level; yet the company is currently seeking to hire nearly 3,000 new workers, as advertised on its website.

In the first quarter of 2023, MWG’s employment costs decreased by around VND900 billion over the same period last year, from over VND3,000 billion to over VND2,100 billion.

MWG made over VND27,105 billion in revenue between January and March, down 25.7% year-on-year. Its after-tax profit stood at over VND21 billion, plunging by 98.5%, while the gross profit margin declined from 22.3% to 19.2%.

MWG’s thegioididong.com and Dien May Xanh saw a 34% decrease in revenue, with most phone and electronics products dropping 25-35%. Bach Hoa Xanh posted a 5% increase in its accumulated revenue during the first three months.

As of March 31, MWG’s total assets fell by 3.4% compared to the beginning of the year, to VND54 trillion, with inventory being the main asset valued at VND21 trillion.

This year, MWG aims to achieve revenue of VND135 trillion, up 1% compared to the previous year, and an expected after-tax profit of VND4,200 billion, up 2%. However, it only completed 0.5% of the annual profit plan at the end of the first quarter.

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