Taiwan-based Pou Chen, parent company of Yue Yuen and supplier to major Western sporting goods firms such as Nike, Adidas and Reebok, announced further layoffs of more than 5,700 workers at Pouyuen Vietnam Co. in Ho Chi Minh City between June 24 and July 8, according to state media reports. The 10-percent job cuts follow the layoff of more than 2,300 workers in February after orders fell amid swollen inventories and macroeconomic headwinds. Pou Chen justified the layoffs in Vietnam by citing the “uncertainty of the near-term operating environment” and the need to pursue a manufacturing capacity diversification strategy.
According to various outlets, the layoffs are the largest since the Pou Chen business opened in Ho Chi Minh City in 1996. The manufacturing hub is under pressure across all sectors, and a third of the production facilities there saw lower demand for labor in the first quarter, the South China Morning Post reported.
