Thailand: Over 600 garment workers shocked by factory closure, amid economic downturn & order decline
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"Shocking! 606 factory workers arrived on their last day of work without realizing it. Their employer announced the closure of the business and issued a 95 million baht compensation check", 22 October 2025
Over 600 garment factory workers were shocked after returning to work as usual when management announced immediate termination. Their employer issued a 95 million baht compensation check, unable to bear the burden due to the economic downturn and the continued decline in orders...
The factory was officially announced as having to "lay off all jobs" due to the company's ongoing losses from the economic downturn that began with the COVID-19 pandemic, leading to a significant decrease in international orders and the continued inability to continue operations...
The company has prepared a severance pay check, totaling over 95 million baht...
Many long-serving employees, 20-30 years in the workforce, tearfully stated that despite receiving the full severance pay, they feel disheartened, as the factory is like a second home...
A local source revealed that the factory used to have orders for garments exported to Japan and Europe. However, following the COVID-19 pandemic, business experienced a severe downturn, resulting in more than half of those orders being lost. Despite management's efforts to restructure and reduce costs, the business ultimately failed to sustain itself.
Meanwhile, it's been reported that workers at other factories in Nakhon Pathom and nearby provinces are closely monitoring the situation, as rumors suggest that several factories in the textile and footwear industries are experiencing similar difficulties, with many more potentially closing if the economy doesn't recover by the end of the year.
This incident is a clear sign of the “economic downturn” that is beginning to have a ripple effect on the country's manufacturing workforce. This not only impacts the more than 600 workers, but also highlights the vulnerability of the Thai industrial sector during the global economic crisis, which shows no signs of recovery in the short term.
[Translation via Google Translate]