"Kampong Cham GFT Factory Blames Falling Orders for Thousands of Layoffs", 10 October 2025

At least 2,700 workers, including unionists, at a garment and shoe factory in Kampong Cham province will lose their jobs … after the company cited falling orders from U.S. buyers.

As questions mount over whether new American tariffs are a factor, workers fear the fallout in Cambodia’s fragile job market. Civil society groups are reviewing the case to ensure labor rights are upheld, after tensions with the firm earlier this year when hundreds of workers went on strike, alleging colleagues were dismissed without proper notice.

The Taiwanese-owned LECROWN Shoes Industry, a supplier to major U.S. brands including Vans, The North Face and Dickies, is undergoing a staggered rollback of operations and plans to terminate around 2,700 contracts by December 10, according to a notice dated Oct. 8…

Previously more than 800 workers said they were unfairly terminated by LECROWN – which the company denies – after it first announced plans in July to dismiss roughly one-tenth of its 10,000 staff due to reduced orders.

But for affected employees such as Chamnan*, she believes the “no orders” claim is a pretext to dismiss long-serving staff and later rehire new employees.

“I am worried about discrimination against older workers,” she said, adding that the factory now employs about 5,000 people and that she could be among the next to be terminated after 12 years.

… The market conditions and downgraded economic outlook have heightened anxieties, though the Labor Ministry claims Le Crown’s calculated severance is in line with law.

“The procedures at the Le Crown factory were carried out in accordance with the law and discussed with all relevant parties,” asserted Labor Ministry spokesperson Sun Mesa.

But local labor rights groups Central said further investigation is needed.

The group’s program manager, Khun Tharo, said they are verifying claims that reduced orders from Le Crown’s main client, VF, which represents several major American apparel brands, prompted the layoffs.

Ashley McCormack, director of corporate communications for VF, did not immediately respond to a request for comment.

Central is also calling for the termination notices of what they believe may be 49 union leaders and activists to be recalled…