Lack of orders from reputed American brands has hit this textile giant in Lesotho badly!
Nien Hsing Textile Co. Ltd., a Taiwan-based garment and textile firm in Lesotho, that makes jeans for Levi’s Wrangler and The Children’s Place, has, reportedly, laid off as many as 4,000 workers in last 1 year.
The textile firm has attributed the decision to lay off workers to lack of work orders from reputed American brands and increasing cost of salaries.
The pandemic menace and ongoing unrest in South Africa have further made things difficult for the company in last 1 year.
While speaking to Lesotho Times, Ricky Chang, Manager, Nien Hsing Textile Co. Ltd., said that the company was in the process to let go 2,500 workers from its C&Y Garments, Formosa Textiles, Global International and Nien Hsing International factories.
Also, another of its facility, Glory International, had let go 1,500 workers after shutting down in 2020.
Ricky has, reportedly, blamed the negative impact of COVID-19 for the loss of jobs, but added that the reduction in orders from US buyers actually marked the beginning of the company’s troubles.
Besides, riots in neighbouring South Africa following the arrest of its former president have also led to uncertain business environment.
Laying off 4,000 workers means that the company’s 10,000-strong workforce has been reduced to half in just 1 year and that’s worrying signs for the company.
Lesotho’s garment industry is one of the African nation’s largest formal industry employers.
