Ecco shuts Vietnam and Portugal factories, affecting about 2,660 jobs
- Ecco halted production at its Vietnam factory on Nov. 2.
- The Vietnam plant employs 1,611 people, including 259 outsourced workers.
- Ecco is also closing its Portugal factory, which has about 650 workers.
- About 400 more Ecco positions will go in global and regional functions.
HO CHI MINH CITY, VIETNAM — Danish footwear maker Ecco has stopped all production and business operations at its factory in Vietnam, affecting 1,611 workers, as part of a global restructuring. The company is also closing its factory in Portugal and cutting about 400 positions in global and regional functions.
The Vietnam plant in Bau Bang Industrial Park employs 1,611 people, including 259 outsourced workers.
Most contracts end Nov. 30
The employment contracts of most of the Vietnam factory’s staff will end on Nov. 30, Vietnam Investment Review reported on Nov. 4. A small number will stay on for a few months to help complete the dissolution process, and will be told of their later working arrangements.
Production stopped on Nov. 2, according to Ho Chi Minh City’s export processing zones and industrial parks management board. The shutdown is part of the dissolution procedures for Ecco’s Vietnam operation.
Ecco began building the 120,000-square-meter factory in October 2019, with registered investment of $38.18 million, and started operations in April 2020. The Portugal factory has about 650 workers, the outlet reported, citing Women’s Wear Daily.
Together, the Vietnam and Portugal workforces and the functional roles add up to about 2,660 jobs.
Fewer, larger plants
The closures are part of a strategy to cut costs in a difficult economic environment. After years of declining demand and significant overcapacity, the group aims to concentrate production at a few existing plants.
It plans to focus on expanding its headquarters in Denmark and its other existing factories to secure long-term sustainability. Sales have declined across all of Ecco’s channels, most sharply in its own direct-to-consumer business.
Outsourced workers caught up in the cuts
The Vietnam figures show how factory closures reach beyond direct employees. About one in six people working at the plant were outsourced workers.
Founded in Denmark in 1963, Ecco makes footwear and runs manufacturing operations in Vietnam. The restructuring shrinks that footprint as demand weakens.
What it means for employers
Ecco is consolidating production rather than moving it to a cheaper location, a reminder that overcapacity can drive closures as much as labor costs. For outsourced workers, a client’s restructuring can end their jobs along with the client’s own staff.
Manufacturers weighing manufacturing outsourcing or planning a redundancy program can review the options in OA’s ultimate guide to outsourcing.
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- Outposter opens Vietnam operations, its fourth country · 31 Oct 2026
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