Taxi firm Vinasun lays off 2,500 employees

According to its newly released financial report, Vinasun had 1,877 employees at the end of 2021, down more than 2,500 people against the beginning of the year. It laid off some 1,900 employees in the last quarter alone.

The recovery of the transport market after the prolonged social distancing was not as fast as expected, resulting in low workload and a large number of cars idling in in parking lots, Vinasun deputy general director Ta Long Hy told VnExpress Saturday, explaining the downsizing,

“Some people wanted to change jobs, return to their hometowns or were stranded in pandemic-hit areas, which was another contributing factor to the sharp increase in the people leaving their jobs,” he added.

2021 is the third consecutive year Vinasun has drastically cut its staff. It had laid off approximately 1,000 and 1,400 people in 2019 and 2020, respectively.

Vinasun recorded revenues of VND484 billion ($21 million) last year, down more than 50 percent against 2020, and made after-tax losses of VND280 billion, nearly four times its original estimate.

The company has been making losses for two consecutive years and if the situation does not improve this year, its stock may be delisted on the Ho Chi Minh Stock Exchange.