HCM City footwear firm continues mass layoffs due to Covid-19
VietReader 12-08-2020, 10:09

Hue Phong Leather Shoes Company Ltd. Co. in HCM City will continue laying off a large number of its workers in late August due to the Covid-19 pandemic.

According to Pham Van Tai, vice chairman of Go Vap District’s Labour Federation, the company planned to lay off 1,577 workers on August 30.


HCM City footwear firm continues mass layoffs due to Covid-19

Workers of Hue Phong Hue Phong Leather Shoes Company Ltd. Co.


The company will have to spend over VND31 billion (USD1.34 million) on compensation payments.

Among those, 198 female workers who are going to have maternity leave in the coming time will be supported with voluntary health insurance.

Tai added that the pandemic has caused Hue Phong’s major partners from the US and Europe to cancel their orders, bringing hefty losses for the company.

The company earlier laid off around 2,500 workers between May and June because of Covid-19-related challenges. These people were later introduced with job opportunities by the HCM City Department of Labour, Invalids and Social Affairs and the city’s Labour Federation.

Up to more than 327,000 employees in HCM City lost their jobs in the first half of this year as a result of Covid-19 pandemic, the highest tally for the past four years.