Beximco Group, one of Bangladesh’s largest conglomerates, has announced the layoff of 40,000 workers from its export-oriented garment and textile factories located in Gazipur, on the outskirts of Dhaka. The decision, attributed to a lack of work orders, impacts over 57% of the company’s workforce in the region, which totals 70,000 employees.
Layoff Details
The layoffs were formally communicated through notices, effective December 16, 2024. Production activities in the affected factories will be suspended until a tentative reopening date of January 30, 2025.
Workers have been informed they are not required to report to the factories during the layoff period. In line with Bangladesh’s labor laws, employees will receive half of their basic salaries and some additional benefits during this time.
The affected facilities include:
- Shinepukur Garments
- Urban Fashions
- Yellow Apparels
- Prefix Fashions
- RR Washing
- Beximco Fashions
- Bextex Garments
- New Dacca Industries
- Int’l Knitwear & Apparels
- Esses Fashions
- Escorp Apparels
- Crescent Fashion and Design
- Crescent Accessories Limited
Challenges Facing Beximco
According to Osman Kaiser Chowdhury, Director of Beximco Group’s Finance and Corporate Affairs Division, the factories are facing operational challenges due to their inability to open letters of credit for raw material imports. This financial bottleneck has halted production and compounded difficulties stemming from reduced international demand.
Broader Implications
Bangladesh’s garment industry, a cornerstone of the country’s economy, has been grappling with declining orders from key global markets. The layoffs at Beximco signal deeper struggles in the sector, potentially affecting livelihoods and raising concerns about the industry’s resilience.
As the situation unfolds, it underscores the urgent need for strategies to stabilize the sector and address challenges in securing raw materials and sustaining international demand.
