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Suppliers for Nike, other brands axe 3,500 Tangerang workers
Following last year's massive layoffs in the textile industry, at least two Tangerang-based manufacturers of foreign footwear brands have laid off 3,500 workers due to a decline in orders, a local manpower official has said, with more due to be axed next year.
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Workers sort athletic footwear on Aug. 23, 2017, during the Nike Bazaar at the Grand Indonesia shopping mall in Central Jakarta. (JP/Dhoni Setiawan)
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wo local footwear manufacturers for Nike, Adidas and other foreign brands have laid off thousands of workers in Tangerang, Banten, amid dwindling orders.
Septo Kalnadi, who heads the Banten Manpower and Transmigration Agency, said PT Adis Dimension Footwear, which makes shoes exclusively for, had laid off 1,500 workers, while PT Victory Chingluh Indonesia, which produces shoes for Adidas, FootJoy, Mizuno, Nike and Reebok, was in the process of laying off 2,000 workers.
“There will be more [layoffs] next year,” Septo said on Wednesday, as quoted by Kompas.com.
He added that the downsizing was not related to minimum wages, and was instead brought about by a reduction in product orders from the foreign clients, which had in turn decreased production volumes.
The layoffs had been ongoing since November, Septo said, and the companies were now handling wages owed to the affected workers.
Last year, Tangerang businesses laid off 12,000 workers, of whom only a small portion had not received compensation, he continued.
“Every day, there was always some company asking for permission for layoffs. The permit is [issued] at the regency or city level, and there were around 12,000 workers throughout 2024,” he said.
