From nearly 4,000 employees now down to 37, what does Garmex Saigon garment company say?

From nearly 4,000 employees at the beginning of 2022, by the end of September 2023, Garmex Saigon Joint Stock Company had drastically cut its workforce to only 37 people. In the first 9 months of this year alone, the company has reduced its workforce by more than 1,900 people. The company has just issued an official dispatch informing about its production and business activities after receiving a document dated November 24 from the Ho Chi Minh City Stock Exchange.

According to the company, at the 2023 Annual General Meeting of Shareholders on April 26 and the Extraordinary General Meeting of Shareholders on September 27, the Board of Directors reported that the business situation was unfavorable. If production at the factories in the garment industry was maintained, the company would lose a lot, so it reorganized the apparatus, continued to cut labor, and temporarily stopped production to minimize losses.

On the other hand, the company will continue to implement maximum cost savings as mentioned by the congress. Currently, the company has not recruited workers for the traditional industry. When the market is favorable enough, whether the company will invest in restoring the garment industry or not depends on the market situation.

Từ gần 4.000 nhân viên nay còn 37 người, công ty may Garmex Sài Gòn nói gì? - Ảnh 1. — Garmex Saigon has cut nearly 2,000 employees in the first 9 months of 2023

In addition, Garmex Saigon said it will optimize existing resources and seek partners to transfer and sell unused assets. At the same time, diversify its business lines to avoid risks for the company. In addition, the company said it has made new investments in 2023 in the housing project (1.5 hectares) of Phu My Joint Stock Company.

Previously, according to the financial report for the third quarter of 2023, the number of employees was only 37, a decrease of 1,945 people compared to the number at the end of 2022. Compared to the beginning of 2022 with more than 3,800 people, Garmex Saigon laid off a total of nearly 98%.

Business results for the first 9 months of this year, the company achieved net revenue of 8.1 billion VND, down 97% compared to the same period last year. The company reported a loss after tax of 44 billion VND, bringing the accumulated loss by the end of the third quarter of 2023 to nearly 66 billion VND.

Garmex Saigon is also one of the leading enterprises in the Vietnamese garment industry with 5 factories, more than 70 production lines and revenue in the years before the Covid-19 pandemic of nearly 100 million USD. The main reason for GMC's serious decline in business this year is the loss of revenue from its partner, Binh Thanh Production, Trading and Import-Export Joint Stock Company (Gilimex, stock code GIL). In the revenue structure of the first 9 months of this year, Garmex Saigon did not record any revenue from its partner, Gilimex, while in the same period last year, this activity brought in more than 224 billion VND. This could be the result after Amazon - Gilimex's largest partner - sharply cut orders when market demand plummeted...

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