"20,000 Bangladesh garment workers laid off in 6 months", 6 July 2026

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...a number of industrial establishments are shutting down every month.

Others are laying off workers, citing various reasons...Many of those affected have yet to receive their unpaid wages, benefits or due compensation.

An analysis...shows that at least 20,000 workers lost their jobs through layoffs or retrenchment during the first six months of this year. Most of them were employed in the ready-made garment (RMG) sector.

Garment manufacturers say layoffs are increasing because of a decline in export orders, while new recruitment has virtually stopped. They also blame financial difficulties caused by limited access to bank financing, which they say is forcing factories to close...

...labour leaders say they do not believe purchase orders have declined significantly...

They argue that...many workers are being laid off for taking initiatives to form trade unions...

According to BGMEA, 80 member factories dismissed or retrenched 19,188 workers during the first six months of the year...Of the 80 factories, 27 have since shut down, while the rest remain operational.

Industrial Police data show that 44 factories in Gazipur laid off 2,155 workers between January and June.

Among them, seven factories dismissed 556 workers because of declining export orders and financial difficulties. These factories include APS Apparels, Evince Textile, National Polymer, SEG Fashion and Bellissima Apparels. APS Apparels dismissed 179 workers, while Evince Textile laid off 180.

The remaining 1,599 workers were dismissed by 37 factories for reasons including labour unrest, halting production, alleged misconduct and document forgery, according to factory owners.

Salahuddin Swapan, former secretary general of the Industrial Bangladesh Council...said... some factory owners have...dismissed workers involved in unionisation efforts on various allegations...

After the Eid-ul-Azha holidays, Al-Muslim Group resumed operations at its factories in Ulail, Savar. On the very first day after reopening, however, the company laid off 1,868 workers from three factories...

...Abu Raihan, deputy general manager (Administration) of Al-Muslim Group, told Prothom Alo that the layoffs had been carried out...business downturn and fewer export orders...

Several garment manufacturers said the imposition of reciprocal tariffs by US President Donald Trump...had hurt Bangladesh’s exports to...the United States. They also cited intensifying competition in Europe and disruptions caused by the Iran conflict as factors contributing to weaker exports, more factory closures and rising layoffs...

Labour organisations...allege that workers are being dismissed unlawfully in many cases.

Babul Akhter, general secretary of the Bangladesh Garments and Industrial Workers Federation, said the government had created an incentive fund to help reopen closed factories. Some owners may even shut down operational factories to qualify for that assistance, he said. The government should investigate why factories are closing and whether laid-off workers are receiving the compensation they are legally entitled to.