From nearly 4,000 employees now down to 37, what does Garmex Saigon garment company say?

From nearly 4,000 employees at the beginning of 2022, by the end of September 2023, Garmex Saigon Joint Stock Company had drastically reduced its workforce to just 37 people. In the first nine months of this year alone, the company laid off more than 1,900 people. The company recently issued a statement on its business operations following a document dated November 24th from the Ho Chi Minh City Stock Exchange.

According to the company, at the 2023 Annual General Meeting on April 26th and the Extraordinary General Meeting on September 27th, the Board of Directors reported unfavorable business conditions. Maintaining production at the garment factories would result in significant losses, so the company reorganized its structure, continued to cut jobs, and temporarily suspended production to minimize losses.

On the other hand, the company will continue to implement maximum cost-saving measures as mentioned at the general meeting. Currently, the company has not re-hired workers for its traditional industries. Whether or not the company invests in restoring the garment industry when market conditions are sufficiently favorable will depend on market conditions.

Từ gần 4.000 nhân viên nay còn 37 người, công ty may Garmex Sài Gòn nói gì? - Ảnh 1. — Garmex Saigon laid off nearly 2,000 workers in the first nine months of 2023.

In addition, Garmex Saigon stated that it will optimize existing resources and seek partners to transfer and sell unused assets. Simultaneously, it will diversify its business sectors to mitigate risks. Furthermore, the company announced new investments in 2023 in a 1.5-hectare housing project of Phu My Joint Stock Company.

Previously, according to the Q3 2023 financial report, the number of employees had decreased to only 37, a reduction of 1,945 compared to the end of 2022. Compared to the beginning of 2022 with over 3,800 employees, Garmex Saigon had laid off nearly 98% of its workforce.

In the first nine months of this year, the company achieved net revenue of 8.1 billion VND, a decrease of 97% compared to the same period last year. The company reported a net loss after tax of 44 billion VND, bringing the cumulative loss up to the end of Q3/2023 to nearly 66 billion VND.

Garmex Saigon is also one of the leading garment businesses in Vietnam, with 5 factories, over 70 production lines, and revenue reaching nearly $100 million in the years before the Covid-19 pandemic. The main reason for GMC's severe business decline this year is the loss of revenue from its partner, Binh Thanh Production, Trading and Import-Export Joint Stock Company (Gilimex, stock code GIL). In the revenue structure for the first 9 months of this year, Garmex Saigon did not record any revenue from its partner Gilimex, while in the same period last year, this activity brought in over 224 billion VND. This could be a consequence of Amazon - Gilimex's largest partner - drastically cutting orders as market demand plummeted...

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