Ecco to Shut Factories in Portugal and Vietnam, Affecting 2,400 Jobs
Ecco is restructuring its global manufacturing network by closing factories in Portugal and Vietnam, consolidating production at fewer facilities and aligning capacity with demand, affecting around 2,400 jobs.
LW Desk
Danish footwear manufacturer Ecco is set to close its shoe production facilities in Portugal and Vietnam as part of a global restructuring program that will affect approximately 2,400 jobs. The decision follows declining sales and mounting pressure to reduce manufacturing costs, prompting the company to reconsider the size and structure of its production network.
The closures will affect two manufacturing locations employing more than 2,000 people. Ecco's factory at Bau Bang Industrial Park in Vietnam's Ho Chi Minh City region has a workforce of approximately 1,400-1,600, while its facility in Santa Maria da Feira, Portugal, employs around 640 workers. A further 400 positions are expected to be cut across the company's international and regional operations, including approximately 80 in Denmark.
Rather than maintaining its existing production scale, Ecco plans to concentrate manufacturing at a smaller number of facilities. Production will continue at its plants in Indonesia, Thailand and China, which will form part of its streamlined manufacturing network. The company believes that reducing excess capacity and focusing on more efficient operations will help improve its cost structure and support long-term financial stability.
The restructuring comes after a challenging financial period. Ecco reported a net loss of €24 million in 2025, following a loss of €37.59 million in the previous year. Revenue declined by 5% in both years on a total basis, while currency neutral sales fell by 3% annually.
The company is also experiencing changes at the top of its management structure. Thomas Gogsig resigned as CEO in October 2026 after holding the position since December 2024. He had spent 14 years with Ecco. The board is expected to appoint an external successor in 2027.
Ecco has meanwhile made appointments to strengthen its senior leadership. Neal Taylor, who previously headed the company's Americas operations, was promoted to global chief commercial officer in August. Adam Meek, formerly associated with Dr. Martens, joined as chief product officer.
The factory shutdowns represent a major adjustment to Ecco's international manufacturing presence, as the company seeks to align production capacity with demand and restore financial stability.
