PHL garments industry warns of more layoffs, temporary closures - BusinessWorld Online

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THE PHILIPPINE garments industry is struggling amid a slump in global demand, warning of temporary closures and more worker layoffs in the next few months. READ:

REUTERSamid a slump in global demand, warning of temporary closures and more worker layoffs in the next few months.

“What happened to our Mactan, Cebu-based members should not be singled out at this moment. This will be a trend for some factories whose customers are starting to cut their projections, so we expect temporary closures or partial retrenchment of workforce in the next few months,” she said at a virtual briefing on Wednesday.

“It might reach to a maximum range of 8-10% if the current trend extends longer or global demand conditions worsen,” Ms. Jocson-Agoncillo said.ation, supply chain disruptions and the ongoing Ukraine-Russia condence in the United States, which is the top garments export market of the Philippines. “The uncertainty of the war in East-Central Europe, rising fuel cost, the disrupted supply chain, and trepidation of another pandemic directly impacts on consumer behavior across the globe,” she added.“Brands and buyers would rather move their existing inventories. This is what the wearables sector is up against, when orders are canceled midstream.

 

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