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16 Apr 2024

Indonesia: Factory reportedly plans to lay off thousands of workers, due to a reduction in orders triggered by post-covid conditions & economic crisis; incl. co. response

In May 2023, it was reported that PT Panarub planned to lay off thousands of workers, as post-covid conditions and the external economic crisis had reportedly triggered a reduction in orders. The factory allegedly plans to lay off thousands of employees, with termination being carried out in stages. In December 2022, it was reported that 300 workers had been fired and another 1,500 workers were expected to be laid off. Workers reportedly only receive half of their owed severance.

In March 2024, Business & Human Rights Resource Centre invited adidas to respond. The response can be found below.