Alliance Knit Composite Ltd (AKCL), an export-oriented garment manufacturer in Ashulia, Bangladesh, has laid off 565 workers, citing a severe downturn in business driven by declining global and domestic purchase orders.
The cuts reflect mounting financial pressure on the factory, which management says has left it with no alternative but to reduce its workforce.
The move underscores the fragility of supply chains in the region as demand softens.
Labour leaders have challenged the company’s explanation, disputing the severity of the order slump and demanding the immediate reinstatement of the dismissed employees.
The dispute highlights the growing tension between cost-cutting measures and worker protections in the sector.
This development adds to concerns about labor market stability in Bangladesh’s ready-made garment industry, a critical export earner for the country.