Major Garments Factory Shutdown in Mactan EPZ Displaces 580 Workers
Over 500 workers at the Mactan Export Processing Zone (Mepz) 2 are confronting an uncertain future after a significant garments factory abruptly halted its operations. The Taiwanese-owned company, which specializes in producing sports apparel, closed its doors on March 14, 2026, citing a severe shortage of incoming orders. This shutdown represents the largest single job loss event in the area so far this year, underscoring a difficult period for the local manufacturing sector in Lapu-Lapu City.
Immediate Government Support for Displaced Employees
Kim Francisco, head of the City Public Employment Service Office (Peso), confirmed that the lack of business orders forced the company to cease operations entirely, leaving 580 employees without work. In response, the government has implemented several support programs to assist those affected:
- Financial Aid: Workers have been referred to the Department of Social Welfare and Development (DSWD) for emergency assistance.
- Livelihood Programs: The Department of Labor and Employment (Dole) 7 is offering training sessions to help individuals develop new skills for alternative income sources.
- Food Assistance: As of March 31, at least 50 workers have purchased rice through the city's subsidized program at P20 per kilogram, while 400 others are seeking additional rice aid to mitigate food insecurity.
Potential Job Opportunities and Ongoing Challenges
There is a small glimmer of hope for the displaced staff, as a different garment factory in the area currently has approximately 500 job openings. Officials are actively encouraging the former sports apparel workers to apply for these positions to facilitate a swift return to employment. However, this latest closure is part of a broader trend of job losses in the export zone, with other companies also struggling in recent months:
- In December 2025, a Japanese company manufacturing beauty laser components closed in Mepz 1, affecting 39 workers.
- In February 2026, an American electric vehicle charger manufacturer laid off 44 employees.
While these individual numbers are smaller, the cumulative impact on the community is growing, exacerbating economic instability in the region.
Historical Context and Broader Implications
The garments industry in Mepz has faced numerous challenges over the years. In 2020, the pandemic led to 4,400 job losses, followed by another 4,000 layoffs in 2022. Between 2023 and 2024, nearly 7,900 people lost their jobs due to various factory closures. This latest shutdown serves as a stark reminder of how fluctuations in global demand directly affect local families and livelihoods. As the city works to find new roles for these 580 individuals, the focus remains on providing steady support and securing more stable employment opportunities for the hardworking residents of Lapu-Lapu City.
