Nearly 1,900 workers were laid off from Al-Muslim Group's seven garment factories in Bangladesh, a stark indicator of plummeting international purchase orders. Bangladesh's economy heavily depends on garment exports, but plummeting global demand and shifting buyer preferences are causing widespread factory closures and job losses. Without significant intervention or a rebound, the sector faces continued contraction and severe economic hardship for its workforce.
Beyond Al-Muslim, at least 79 factories in Bangladesh laid off 7,784 workers by May 31, according to WWD. The Ashulia industrial zone, a major garment hub, saw 35 factories dismiss approximately 5,000 workers between January and May 2026, WWD reported. These are not isolated incidents, but a widespread and accelerating problem impacting thousands of families and major industrial hubs.
The Human Cost of Vanishing Orders
- Labour leaders, including those from the Bangladesh Garment Workers Unity Council, fear job losses will increase, according to Newagebd.
- Organizations like the Garment Sramik Front demand an immediate halt to job cuts, as reported by Newagebd.
- Many workers face dismissal without proper compensation or notice, exacerbating their hardship, according to Newagebd.
- Layoffs concentrated in areas like the Ashulia industrial zone create a localized crisis, devastating specific communities and their dependents.
Plummeting Exports Drive the Crisis
Bangladesh's apparel exports to the United States declined by 11.21% in the first four months of 2026 compared to 2025, according to The Financial Express. A sharp reduction in US purchase orders points to a specific market vulnerability, not a universal global slump. American buyers are actively re-evaluating supply chains, placing Bangladesh's future as a garment hub in measurable jeopardy.
