The company with the most employees in Ho Chi Minh City is cutting another 1,200 jobs.

Due to difficult order conditions, PouYuen Vietnam has to cut jobs (Photo: Hai Long).

On August 23, information from the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs indicated that Pouyuen Vietnam Co., Ltd. (Binh Tan District, Ho Chi Minh City) had reported its plan to terminate the employment contracts of 1,221 workers due to the lack of order recovery.

According to the plan, by the end of August, the company will notify and negotiate with each worker slated for layoff regarding related matters such as severance pay, payday, social insurance benefits, etc.

The severance pay scheme for the upcoming layoffs is the same as previous layoffs in 2023. Specifically, the company will pay 0.8 months' salary for each year of employment (the severance pay is calculated as the average of the 6 months' salary prior to contract termination).

In September, the company will finalize social insurance records and complete the procedures for terminating employment contracts with the aforementioned employees. Payment of severance benefits will be made to employees 7 days after contract termination.

Ho Chi Minh City labor officials provide policy advice and job placement services to PouYuen workers who lost their jobs in July (Photo: Ho Chi Minh City Employment Service Center).

From the end of 2022, PouYuen Vietnam began reducing orders, forcing the company to implement a rotating weekend schedule for its workers to ensure everyone had work. Throughout 2023, the order situation remained difficult, leading the company to cut back on labor.

In the first instance, the company laid off over 2,300 people in February. In the second instance, the company further reduced its workforce by over 5,700 people, divided into two phases in June and July. In total, across both phases, PouYuen Vietnam has laid off approximately 8,000 workers.

The upcoming layoffs in September will be the third time PouYuen Vietnam Co., Ltd. has reduced its workforce in 2023.

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