HCMC – PouYuen Vietnam is set to provide financial aid totaling VND165 billion to 1,220 employees who will be laid off next month, according to the HCMC Department of Labor, War Invalids, and Social Affairs on August 29.
Each worker facing layoffs will receive an amount equivalent to 0.8 months of salary for each year of service, resulting in an average allowance of VND133 million per employee.
Certain workers will receive the highest amount of VND370 million, while six others with less than five years of service will receive VND18.8 million to VND22 million.
Even after their employment contracts are terminated, these workers will continue to receive benefits such as social insurance, health insurance, and unemployment allowance.
The decision to reduce the workforce is attributed to a decline in orders since December 2022. Economic challenges and reduced consumer spending have directly impacted the company’s operations, leading to a workforce restructuring in line with the ongoing global economic conditions, said its representative.
The department has instructed job service centers to actively assist workers in finding new employment opportunities.
Pouyuen Vietnam is the most labor-intensive firm in HCMC. The company once employed nearly 100,000 workers during peak periods.
Its upcoming workforce reduction, the fourth of its kind, trimmed the number of laborers to around 38,200.
