In the Ashulia industrial zone, 35 garment factories dismissed approximately 5,000 workers between January and May, marking the steepest losses in a widespread wave of layoffs across Bangladesh. The rapid contraction impacts thousands of livelihoods, threatening a critical national industry. Overall, at least 79 factories in Bangladesh laid off 7,784 workers in the five months through May 31, a direct result of a shortage of purchase orders, according to WWD.

Bangladesh's garment industry has been a consistent engine of economic growth, but it is now experiencing mass layoffs driven by external forces like declining international purchase orders. The tension exposes the inherent vulnerability of an export-dependent labor market.

Without a significant rebound in global consumer demand or robust government and industry support, the crisis in Bangladesh's garment sector is likely to deepen, leading to further job losses and prolonged economic instability.

Thousands of Workers Displaced Across Key Industrial Zones

  • The Ashulia industrial zone recorded the most severe impact, with 35 factories dismissing about 5,000 workers between January and May, according to WWD.
  • Al-Muslim Group laid off nearly 1,900 workers across its seven garment factories, citing a shortage of purchase orders, en.bd-pratidin.com reported.
  • In Savar, 1,868 workers from seven garment factories under the Al-Muslim Group lost their jobs.

With nearly 89% of reported layoffs concentrated in Ashulia and Savar/Al-Muslim Group, the crisis is not a uniform industry-wide slowdown but a targeted shock. The concentration of layoffs risks localized economic collapse and social instability in these highly dependent regions.

Plummeting Global Demand Drives Order Shortages

Bangladesh's garment exports dropped 3.41 percent year-over-year from July to May of fiscal year 2025/26, according to WWD, reflecting a broader contraction in international demand. Apparel exports to the United States suffered a deeper setback during the first four months of the year, according to The Financial Express.