PouYuen Vietnam, the most labor-intensive firm in Binh Tan District, HCMC, has decided to lay off almost 6,000 workers in June and July due to the shortfall of new orders for the year.
Photo: Pouyuen Vietnam has the most significant number of employees in Ho Chi Minh City
At a recent meeting with city departments, leaders of Pou Chen Vietnam Group and PouYuen Vietnam they disclosed that their company has been compelled to reduce its production and workforce due to a significant decline in new orders.
The Taiwan-invested footwear material manufacturer will lay off 5,744 employees with indefinite contracts, or 10% of the workforce. The layoffs will be conducted in two phases, with 4,519 workers leaving on June 24 and another 1,225 on July 8.
This is the largest layoff that PouYuen has resorted to in HCMC since its establishment in 1996.
Workers who are laid off are entitled to support payment of 0.8 months’ salary for each year of employment. The payment amount is calculated based on the average wage for the six consecutive months before the layoff.
PouYuen also laid off 2,358 workers in February 2023 due to a sharp drop in new orders for this year.
The HCMC People’s Committee has required relevant departments and agencies to monitor the job situation at PouYuen and support affected workers. Job placement centers were also asked to provide laid-off workers with new job opportunities.
(The Saigon Times)