S Alam Group Lays Off More Than 4,000 Workers at Eight Factories

S Alam Group has laid off more than 4,000 workers from eight of its factories, citing prolonged raw material shortages and operational difficulties linked to the companies’ inability to open letters of credit (LCs) for imports.

Workers were informed of the layoffs on Thursday and Friday, July 30–31, with the decision set to take effect on August 1.

The affected factories had continued limited production using previously stockpiled raw materials. With those supplies now largely exhausted and new import LCs reportedly unavailable, production has become increasingly difficult.

Essential personnel, including security guards, gatekeepers and office support staff, will reportedly retain their jobs.

Workers said the layoffs were announced at the factories on Thursday afternoon.

At S Alam Refined Sugar Industries, workers reacted emotionally after learning that their jobs were being terminated. Some broke down in tears, while others stood silently wiping their eyes.

The affected facilities include S Alam Refined Sugar Industries, S Alam Cold Rolled Steels, Infinity CR Strips Industries, S Alam Steel, S Alam Cold Rolled Steels NAF, Chemon Ispat, Galco Steel, S Alam Bag Limited, S Alam Cement and S Alam Vegetable Oil, according to information provided by the group.

An S Alam Group official, speaking on condition of anonymity, said the factories had not been formally declared closed.

“Closing a factory is one thing, while laying off workers after settling their dues is another,” the official said.

He said the decision was taken because the factories had run out of raw materials and were unable to open new import LCs.

“Many workers had already been kept idle for a year to a year and a half while continuing to receive salaries,” he said.

The layoffs mark a major employment setback for thousands of workers at the group’s industrial facilities in Chattogram. The longer-term future of the factories remains uncertain as raw material shortages and difficulties in opening new import LCs continue.