PouYuen Vietnam, one of Vietnam’s largest shoe manufacturers for major brands such as Nike and Adidas, will cut thousands of workers at the end of the month due to a slump in orders, AFP reported.

The form, a unit of Taiwan-based Pou Chen Group, will lay off 3,000 factory workers and will not renew the contracts of 3,000 others because of “very few production orders in 2023”, Ho Chi Minh City labour department document said.

One of the world’s largest exporters of clothing, footwear, and furniture has been badly affected by the cost-of-living crisis in major markets in Europe and the United States, with the buying power of worldwide consumers plunging.

PouYuen is the commercial capital Ho Chi Minh City’s largest employer, with around 50,000 employees.

“The company has told the workers’ union that in February it plans to cut 3,000 workers... and it will expect to announce those workers on 25 February,” the document said.

Factory workers will continue to be paid until they receive unemployment benefits, according to the document.