Face the truth of the industry and foresee the future of the footwear industry
Thousands of people working at the shoe factory for Puma-Indonesia were sent layoff notices
This shoe factory is the manufacturer of Puma shoes. Currently there are about 2,400 people and it is expected that about 600 employees will be laid off.
On June 6, according to Indonesia Business Daily:
Horn Ming Indonesia is a Puma shoe manufacturer headquartered in Cigubub town, Tangerang district, Banten province. Currently there are about 2,400 people and it is expected that about 600 employees will be laid off.
The shoe factory sent a layoff notice
According to reports, the company officially sent a layoff notice to the local government through the Tangerang District Labor Bureau on May 8 this year.
According to a news report on June 6, Tangerang District Labor Director Rudy Hartono said: “Yes, that's right, we received news last week that 600 employees of Horn Ming Indonesia will be laid off .”
The world's leading shoe manufacturer is cutting 600 workers out of a total of 2,400 current employees.
According to him, due to the slowdown in global economic growth and the company's output decreasing, the company has applied a strategy of reducing personnel to increase efficiency.
The downturn in the European market after the Russia-Ukraine war is the cause of decreased orders.
At the same time, he said the Tangerang District Labor Office will verify the layoff notice from Horn Ming Indonesia to ensure that workers affected by the layoff notice enjoy their benefits.
This is not the first time a wave of layoffs in occupations with high labor demand has occurred in Tangerang County. This year, many workers were affected by layoffs.
One of them is Tuntex Garment, the Puma sportswear factory, which closed in April this year, 1,200 employees lost their jobs.
“Layoffs are inevitable,” Rudy said. It depends on the company's financial situation. We just hope that there will be no more layoffs.”
Between January and March 2023, the number of people laid off in Indonesia increased by 6,000, bringing the number of workers laid off since last year to 31,700.
Exports of the leather and footwear industry decreased by 50% this year
Mr. Firman Bakri, CEO of the Indonesian Footwear Association (Aprisindo), said that footwear export demand still shows no signs of improvement, with a decrease of 17.5% in the first quarter of 2023. Aprisindo expects this year's exports to fall by 50% compared to last year's $7.7 billion.
“Exports in the first quarter of 2023 reached 1.6 billion USD, down 17,57% compared to 1.9 billion USD in the same period last year. With this result, it is expected that this year's exports will decrease from last year's USD 7.7 billion, which is a decrease of 20% based on our positive figures. And in a pessimistic way, that number could drop from 40% to 50%.”
“Our largest export share is about 33% in the US, 25% in the second EU and 17% in China. So far, there are no positive indicators forecasting an increase in export demand.”
“We expect this to continue until the beginning of the second half of 2024. The Minister's manpower regulations are essential and we hope to extend them until the middle of next year.”
Translation: Raw materials for the leather, shoe and handbag industry Alran-0399389514
Source: Author Vuong Dung Quan
PUMA is one Multinational corporations of Germany specializing in designing and manufacturing footwear, clothing and sports accessories, is a famous fashion company founded in 1948 in Herzogenaurach, Germany. The brand's logo is a picture of a black panther jumping over the letter P in the brand name, extremely strong and dynamic.
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