Adidas and Nike shoe supplier has been planning on cutting down jobs in Vietnam. The shoe supplier, known as Pou Chen Corp is the largest shoe supplier in the world. According to sources, the Taiwanese supplier has decided on slashing 6,000 jobs at its Ho Chi Minh City plant.
Pou Chen Corp will lay off 3000 employees by the end of March. While the remaining 3000 jobs will not get a contract extension at the end of this year.
Pou Chen Corp supplies several shoe brand leaders, other than Adidas; Nike is also one of the benefactors of the plant in Vietnam.
After this news, Pou Chen’s shares were down by 1.2% in Taiwan however in broader markets shares fell only 0.1%. In addition, Adidas, shares are also down by 1.91%. While Nike Shares are at a high of 0.37%.
Additionally, Adidas Adidas has already been facing challenges after the termination of its partnership with Ye. The shoe giant exclaimed that it currently has more than $1 billion worth of unsold inventory. Will the Pou Chen downsizing further affect the stock prices of Adidas and Nike?