The government is working to find new job opportunities for 40,000 workers laid off by Beximco Group, with plans to place them in factories under the Bangladesh Export Processing Zone Authority (Bepza) and the Bangladesh Economic Zones Authority (Beza), according to a senior official from the Ministry of Labour and Employment.
Beximco Group, a major conglomerate, laid off more than 40,000 employees in December across its 16 textile and garment factories. The company cited a significant decline in work orders from international retailers and brands as the reason for the layoffs.
In addition to efforts to find new jobs for the displaced workers, the government is also looking for potential foreign buyers for Beximco’s textile and garment units. AHM Shafiquzzaman, the Labour Secretary, explained that the government has implemented this decision following advice from the advisory council. He also noted that the laid-off workers will receive partial salaries from Janata Bank until March 2025.
Recently, an independent board was formed by the Bangladesh Securities and Exchange Commission (BSEC) to oversee the sale and operations of Beximco’s factory units. The board reported that the pharmaceutical and ceramics divisions of the group are profitable and will continue to operate. Meanwhile, the Bangladesh Investment Development Authority (Bida) is actively working to find foreign buyers for the group’s textile and garment factories.
The group’s financial troubles surfaced after the political upheaval in August 2024, when its Vice-chairman, Salman F Rahman, was arrested amid accusations of using his political influence for personal gain. Reports from Bangladesh Bank show that Beximco owes nearly Tk 50,000 crore in bank loans, with more than half of that amount classified as non-performing loans. Janata Bank, which is owed over Tk 23,500 crore, may be able to sell Beximco’s properties to recover some of the debts.
The Labour Secretary confirmed that legal procedures will be followed in the sale of Beximco’s assets and that the advisory council will review the situation in a meeting on January 20. However, Osman Kaiser Chowdhury, a representative of Beximco, opposed the government’s intervention, stating that the company would pursue legal action if the government proceeds with the sale.
Beximco’s textile and garment units, once a significant exporter, have seen a major decline. Before the political changes, Beximco used to export around $30 million worth of textiles and garments each month. Chowdhury argued that if the government allows the company to open letters of credit (LCs), Beximco could resume its export operations, thanks to strong ties with international retailers.
In response to the layoffs, the Bangladesh Investment Development Authority (Bida) and Beza are discussing ways to help the affected workers find new jobs in export-oriented garment factories, where there is ongoing demand for workers. Ashik Chowdhury, the executive chairman of both Bida and Beza, expressed hope that these workers could be absorbed into other factories, as the work orders that Beximco once handled may remain within the country.
As the government moves forward with the sale of Beximco’s textile units, Bida is submitting customer proposals to the advisory council for review, though the number of proposals received so far remains undisclosed.
The factories affected by the layoffs are primarily located in Gazipur, on the outskirts of Dhaka. On December 15, Beximco issued a notification about the layoffs, in line with Bangladesh’s Labour Law, which ensures workers receive half their basic salary and other benefits during the layoff period. Beximco employed around 70,000 workers, meaning that more than half of its workforce was impacted by these layoffs.
 and the Bangladesh Economic Zones Authority (Beza), according to a senior official from the Ministry of Labour and Employment.){kind=link}