"3 firms at MEZ sack 126 workers", 13 April 2025

IN LAPU-LAPU City’s Mactan Economic Zone (MEZ), a significant number of workers have been impacted by recent business closures and operational reductions.

More than 120 workers in MEZ have lost their jobs due to the shutdown of two companies and the reduction of operations by another, primarily attributed to decreased demand.

City Public Employment and Service Office (Peso) head Kim Francisco confirmed in a phone interview with SunStar Cebu on Saturday, April 12, 2025, that a total of 126 workers from three MEZ companies were retrenched. This includes 55 workers laid off from a renewable energy firm, 51 from a semiconductor devices company, and 20 from a Japanese-owned fashion accessories manufacturer...

Francisco disclosed that the renewable energy company ceased operations in April 2024 but only officially informed Peso the following year. The fashion glove manufacturer completely shut down in April 2025. He added that this is the first reported displacement in 2025 involving the fashion accessories firm and the semiconductor manufacturer. While the latter remains operational, it has significantly reduced its workforce because of decreased order volumes.

Francisco, a former human resource manager in the economic zone, stated that retrenchment and redundancy are a “normal practice” in MEZ. He attributed this to the seasonal nature of some manufactured products, leading to fluctuations in the workforce. “Usually, it’s a common practice to reduce the workforce in their company. We have what we call low season and peak season in manufacturing,” he explained...

Based on reports, since May 2024, more than 4,500 garment workers were reportedly laid off. Some reports mentioned an additional 500 being placed on forced leave around the same time.

The layoffs were part of a broader trend of job losses in MEZ, with at least 17,334 employees laid off since 2020 due to various factors like company shutdowns, downsizing, and restructuring. In addition, the layoffs were largely attributed to the impact of the Covid-19 pandemic, financial constraints, and supply chain issues affecting garment firms.

Five months later, in October 2024, at least 337 workers lost their jobs at MEZ after an electronics solution provider company located in MEZ 1 permanently ceased operations in September 2024, with the final termination date reported around October 7 of the same year. The reason the company was forced to shut down was due to severe financial losses.

Reportedly, the same electronics company had to let go of 40 employees in February 2024 due to redundancy.

The MEZ is a major industrial hub in the Philippines, known for hosting various manufacturing companies, including those in the renewable energy, semiconductor, and fashion accessories sectors. These industries are crucial for the local economy, providing employment opportunities and contributing to economic growth. / DPC