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25 May 2023

Suara Nusantara

Indonesia: Factory lays off 2000 workers due to reduction of orders from buyers amid economic crisis

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"PT Panarub, Adidas shoe manufacturer, lays off thousands of employees in 2023", 25 May 2023

Adidas shoe manufacturer...PT Panarub...will lay off thousands of employees in 2023. Head of the Tangerang City Manpower Office, Ujang Hendra, said that the termination of employment was carried out in stages...

"We have submitted a plan to lay off a total of 2,000 employees in stages starting at the beginning of January," said Ujang...

Regarding fulfilling the obligations of employees, Ujang claims that no report has been submitted to his party. "So far, they have reported that they have resolved everything, as evidenced by the absence of reports related to industrial relations problems," he said.

Ujang explained that the reason for the wave of layoffs was due to the impact of the Covid-19 pandemic which had an impact on sluggish job orders at the shoe company.

"Indeed, post-Covid conditions and the external economic crisis have triggered a reduction in job orders related to labor-intensive factories, in this case Adidas shoes," he said.

Meanwhile, the President Director of PT Panarub Industry, Budiarto Tjandra, said that the current conditions were caused by the global situation which was still not good.

"causing demand for footwear made in Indonesia to decrease," he said...

"...buyers still have a lot of inventory in our export destination countries, so they are reducing their orders," he said. "

As a result, demand for factories in Indonesia has decreased," he explained, he continued.

He said that the layoffs were carried out because the company had to manage its income and expenses in order to survive.