Many Nike manufacturing plants cannot make ends meet and have chosen to close or relocate.
Nike sneakers’ global sales have been affected by the COVID-19 epidemic, which has also led to a large number of orders in the upstream supply chain. As a result, many manufacturing plants are unable to make ends meet and have chosen to close or relocate.
Recently, Qinglu Group (VC), a Nike shoe manufacturing factory located in Tangerang, Indonesia, cannot withstand the epidemic. As a result, 4,985 factory employees were terminated due to the economic impact it had caused.
Qinglu Group is a Taiwanese shoemaking company with two factories in Indonesia. The company has not yet responded to the layoffs.
“Qinglu Group laid off 4,985 employees in Indonesia. They are the tenth company in the Tangerang region that cannot survive the impact of the epidemic.” Hedra, president of the local government’s labor dispute resolution said.
“Due to the sharp drop in market demand for sneakers, they were unable to make ends meet and laid off employees. Qinglu Shoes has explained to us the reasons for the massive layoffs in a meeting, and union representatives from the factory also participated in the meeting.”
Earlier this month, another shoe factory in Tangerang also closed, laying off 2,500 employees. Banten, where Tangerang belongs, has the highest unemployment rate among Indonesia’s 34 provinces this year due to the closure of many factories. According to government statistics, the unemployment rate in Banten Province is as high as 8.01%.
Firman Bakri, chairman of the Indonesian Footwear Producers Association, said that if demand continues to be sluggish, shoe factories that supply well-known sports brands such as Nike and Adidas may lose up to 70% of their orders, leaving more Many workers are facing unemployment.
Affected by the protests, Nike, Adidas, etc. closed some stores in the United States.
On June 1, according to the “Wall Street Journal” Chinese website, Nike also confirmed that the company will close due to the protests. of some U.S. stores. “Nike supports free and peaceful protests and we do not tolerate violence,” Nike said in a statement. “We are closely monitoring protests occurring across the country.” The company said it was unclear how many stores had been closed or when Nike would reopen them. During protests on Saturday (May 30) night, rioters broke into a Nike store in Manhattan.
In addition, according to the Wall Street Journal, Adidas will temporarily close all its stores in the United States after at least one store was attacked late Saturday night. According to CNBC, Walmart confirmed that it will close hundreds of stores nationwide.
