The government will assist in finding employment opportunities for 40,000 workers affected by layoffs at Beximco

In December last year, Beximco Group laid off over 40,000 workers across 16 textile and garment units, citing reduced orders from international clothing brands and retailers. The government is now working to find employment for these workers within factories under the Bangladesh Export Processing Zone Authority (BEPZA) and the Bangladesh Export Zones Authority (BEZA), according to AHM Shafiquzzaman, Secretary of the Ministry of Labour and Employment. 

This initiative stems from a decision by the government’s advisory council, which also mandated partial salary payments for the laid-off workers through Janata Bank until March 2025. The government is simultaneously seeking foreign buyers for Beximco's textile and garment units, as well as its other assets, through an independent board established by the Bangladesh Securities and Exchange Commission (BSEC).

The BSEC board has reported that Beximco’s pharmaceuticals and ceramics divisions remain profitable and will continue operations. Meanwhile, the Bangladesh Investment Development Authority (BIDA) is facilitating the sale of the group's textile and garment units.

Following the political downfall of the Awami League government in August 2024, Beximco Group, led by Vice-Chairman Salman F Rahman—currently incarcerated on charges of exploiting political influence—faced financial scrutiny. Recent Bangladesh Bank data revealed that Beximco owed nearly Tk 50,000 crore in loans, over half of which were classified as non-performing. Of this, Tk 23,500 crore is owed to the state-owned Janata Bank, which may liquidate Beximco properties in accordance with legal protocols.

The advisory council is set to meet again on January 20 to review the progress of asset sales. However, Osman Kaiser Chowdhury, Director of Finance and Corporate Affairs at Beximco Group, has opposed the government's actions, arguing that only the company itself has the right to sell its assets. Beximco has challenged the appointment of government-nominated directors to its units in court and intends to seek further legal recourse if asset sales proceed.

Despite the layoffs, Beximco Group claims it can resume operations and exports, which once averaged $30 million monthly, provided it is allowed to open letters of credit (LCs). 

BIDA Executive Chairman Ashik Chowdhury confirmed ongoing efforts to rehabilitate laid-off workers in export-oriented factories, which have a steady demand for skilled labor. He noted that orders previously managed by Beximco are expected to remain in Bangladesh, providing opportunities for other factories.

Located primarily in Gazipur, the affected Beximco units include notable names like Shinepukur Garments, Urban Fashions, and Yellow Apparels. Notifications issued by Beximco on December 15 cited Labour Law provisions for half-pay and limited benefits during the layoff period. The layoffs, impacting over 57% of Beximco’s 70,000-strong workforce, mark a significant challenge for the company and the government alike.