Ecco is set to close its factories in Portugal and Vietnam as part of a global restructuring plan. The closures will affect between 2,000 to 2,250 factory workers in both facilities.
The factory in Bau Bang Industrial Park in Ho Chi Minh City, Vietnam employs between 1,400 and 1,600 workers. It began operations in 2020. In Portugal Ecco’s factory in Santa Maria da Feira which opened in 1984 employs around 650 workers.
The restructuring comes as Ecco continues to face financial challenges. The company’s 2025 annual report showed revenue of €1.41 billion a 5.2% decline from €1.49 billion in 2024. It also recorded a net loss of approximately €24 million compared with €37.6 million in the previous year.
Ecco attributed the revenue decline to lower consumer demand, tariffs and cautious consumer spending across its markets. The company said all sales channels experienced declining sales with its directly operated retail business seeing the greatest impact.
Ecco has also made changes to its leather manufacturing operations. Following a fire at its tannery in Dongen, the Netherlands the company discontinued leather production at the facility and said it would continue supplying leather through its tanneries in Asia.
ALSO READ: Ecco Leather to Permanently Close Dongen Tannery After 2025 Fire and Move Production to Asia
The company is also undergoing a leadership change. Thomas Gogsig resigned as CEO in October after 14 years with Ecco. The board has started searching for an external candidate to replace him.
Leathernews.org previously reported on his departure in Ecco CEO Thomas Gogsig Resigns After 14 Years with the Company.
