Beximco Group Lays Off 40,000 Workers, Shuts Down 15 Garment Units in Gazipur

Local Correspondent

Beximco Group has laid off approximately 40,000 workers across its 15 garment units in Gazipur, citing a lack of work orders as the primary reason. According to a notice issued by the company on December 15, the layoffs took effect on December 16, with production activities suspended until January 30, 2025.

The notice stated that workers are not required to report to the factories during this 45-day layoff period. However, under labor laws, they will receive half of their basic salary along with certain other benefits.

Osman Kaiser Chowdhury, Director of Finance and Corporate Affairs at Beximco Group, said, “We are unable to open new letters of credit (LCs), which has halted raw material imports.” As a result, production at units such as Shinepukur Garments, RR Washing, Beximco Fashions, Bextex Garments, New Dhaka Industries, International Knitwear & Apparels, and Asses Fashions has been suspended.

Beximco Group, which employs a total of 70,000 workers, has affected around 57% of its workforce through this decision. The government has announced some support to ensure workers receive their wages but indicated that such assistance cannot be sustained in the long term.

Analysts attribute Beximco Group’s challenges not only to economic factors but also to political pressures. After the fall of the Awami League government in August, allegations of financial irregularities were raised against the group’s Vice Chairman, Salman F. Rahman. Additionally, the group faces significant bank loan pressures.

Md. Ruhul Amin, a receiver appointed by Bangladesh Bank, stated, “While the government has provided assistance to pay staff salaries, efforts are underway to secure funding from banks to restart operations. However, overcoming the current production halt may take time.”

Babul Akhter, General Secretary of the Bangladesh Garment and Industrial Workers Federation, expressed skepticism about the factories reopening. He suggested that workers should be permanently laid off only after all dues are settled and urged global brands to support worker rehabilitation efforts.