HCMC – Some 1,200 employees at Footgearmex Footwear Company in HCMC’s Binh Tan District will be laid off in December as the firm is short of orders.
The Taiwanese-invested firm has announced to terminate the labor contracts with these employees, with effect from December 1, to scale down its production, the local media reported.
Global economic uncertainty and runaway inflation have taken a toll on many of the firm’s partners, leading to a sharp reduction in orders at the company. Though the firm adopted multiple measures to maintain its production scale, it failed, according to its announcement.
All the workers losing their jobs will receive jobless allowances, equivalent to two months’ salaries, from the firm. The company will also give year-end bonuses to those who have worked at the firm for 12 months or longer.
Established in HCMC in 1998, Footgearmex Footwear currently has some 1,800 workers and specializes in manufacturing footwear for export to Europe.