Taiwanese shoemaker PouYuen Vietnam Co. Ltd., the most labor-intensive firm in Ho Chi Minh City, will lay off over 5,740 more workers in late June and early July due to a shortfall of new orders, heard a press briefing on the city’s socio-economic performance on Thursday.

Deputy director of the Ho Chi Minh City Department of Labor, War Invalids, and Social Affairs Nguyen Van Lam told the press conference that Pou Chen Group, the parent of PouYuen, had earlier announced the lay-off plan to the department.

The mass dismissal will be conducted into two phases, with 4,520 employees to be fired on June 24 and 1,225 others on July 8.

Among the laid-off workers, 34.3 percent reside in Long An and Tien Giang Provinces in the southwest region and 30.4 percent are dwellers in Ho Chi Minh City.

The number of affected workers at the firm living in the central and northern regions accounts for 35.3 percent.

Over 53 percent of the redundant employees are over the age of 40.

Pregnant employees, workers on maternity leave, parents of under-12-month-old children, and those who are disabled will not be subject to the lay-off, according to the company.

The shoemaker will work with employees to terminate labor contracts and offer allowances.

Accordingly, the employer will support the laid-off workers with 0.8 months' salary for every year they have been with the company.

The payment will be calculated based on the average salary of their six straight months of employment before the lay-off.

Lam said that the municipal department teamed up with the Center for Employment Services in Ho Chi Minh City and the company’s labor union to conduct a survey on the laid-off workers’ potential ability to get new jobs.

The firm has introduced 4,960 positions at 16 enterprises to the affected workers.

The department has joined hands with the People’s Committee of Binh Tan District to support the affected workers.

In February, PouYuen Vietnam, located in Binh Tan District, slimmed down its workforce by eliminating over 2,300 positions, blaming a decline in orders.

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