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Friday, July 19, 2024

PouYuen to lay off over 1,200 employees

The Saigon Times

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HCMC – PouYuen Vietnam, one of the largest employers in HCMC, is set to lay off 1,221 workers with permanent contracts due to a shortage of new orders, according to an official from the HCMC Department of Labor, Invalids, and Social Affairs.

The company said that individual notifications regarding legal liability matters would be sent to the employees concerned on August 26.

The Taiwanese footwear manufacturer located in Binh Tan District is undergoing its third round of layoffs this year. This recent reduction in workforce follows earlier layoffs in February, which impacted 2,300 employees, and in May, which affected 5,700 workers.

The May layoff marked the largest workforce reduction by PouYuen in HCMC since its establishment in 1996.

PouYuen Vietnam has stated that the need to restructure operations and implement job cuts arises from the mounting challenges in securing new orders from foreign partners.

Workers being laid off will be entitled to an allowance equivalent to 0.8 month’s salary for each year of employment. The payment amount will be determined by calculating the average salary earned during the six consecutive months preceding the layoff.

The company’s current number of employees is 39,500, the local media reported.

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