Danish footwear manufacturer ECCO has announced the cessation of operations at its factory located in the Bau Bang Industrial Park in southern Vietnam. This decision, which took effect on November 2, 2026, impacts more than 1,600 workers, marking a significant shift in the company’s global production strategy.
The closure follows a strategic move by ECCO’s Danish parent company to dissolve its Vietnamese subsidiary. A total of 1,611 employees, including those working through outsourced service providers, will face the termination of their contracts, most of which are expected to conclude by November 30. Over recent years, ECCO has experienced a notable decline in market demand alongside an excess in production capacity, prompting this restructuring effort.
Established in 2020, the Bau Bang facility symbolized a significant investment for ECCO, amounting to approximately million, and was designed to produce up to 8.1 million footwear products and components annually. Despite this ambitious setup, the diminishing demand for ECCO’s products has necessitated a reevaluation of its operational strategies.
This factory closure is not an isolated incident; it is part of a broader restructuring initiative by ECCO that also includes shutting down a facility in Portugal. The company’s strategy is to consolidate production by concentrating its operations within fewer existing facilities, thereby optimizing its global manufacturing network.
In response to the unfolding situation, ECCO has committed to addressing the immediate needs of its affected workforce. The company has assured that it will settle all outstanding wages and provide additional financial support to help mitigate the impact of the layoffs on the employees impacted by this decision.
The ongoing adjustments in ECCO’s production strategy reflect broader trends within the footwear industry, where companies are increasingly forced to adapt to evolving market conditions and consumer preferences. As the industry moves forward, companies like ECCO must navigate these challenges while attempting to maintain operational efficiency and uphold their commitment to their workforce.
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