Electronics retail giant Mobile World plans to give each employee an average year-end bonus of VND28 million ($1,100), triple that of 2023, as the company posts strong performance.
In total it has allocated VND1.7 trillion to bonuses, up 2.5 times from last year.
Addressing shareholders’ concerns about the surge in spending, CFO Vu Dang Linh said that the company’s improved business performance allows it to increase the reward to encourage employees.
Last year Mobile World gave each employee an average bonus of VND10.3 million, lowest in 15 years.
“The higher bonus is necessary for the company’s sustainable development,” Linh said.
Mobile World had more than 60,200 employees by the end of September. The average bonus is equivalent to an employee’s three-month salary.
In the first nine months the company terminated contracts with over 5,100 employees, one of its biggest layoffs ever.
Last year it laid off nearly 8,600 people.
Leaders of the company said that the layoffs were part of a restructuring process that has now been mostly completed. Fewer layoffs are expected in the upcoming quarters.
Nguyen Duc Tai, chairman of the company, said that the strength of his staff determines whether double-digit growth rates are achievable.
Professional staff – who help install expensive household appliances – and post-sale service employees will help the company compete with e-commerce platforms, he added.
