Lull after storm: Layoff fears haunt garment unit workers

Noida: Garment units find themselves in a vacuum during what would normally be peak production season. If not for the 50% US tariffs, they would now be getting into top gear for the spring 2026 line.

But those orders have already been shipped in a major production rush to beat the tariffs. Without fresh US orders, many shop floors are, for the first time, working below capacity at this time of year.To contractual workers - unskilled hands like loaders, washers and lifters who are at the bottom of the chain - the telltale signs have been visible for weeks. May-Sept is when unskilled workers like Bharat Prajapati get jobs, but this year, he could not find one.

"I had to get a construction job," he said on Wednesday.At factories, machines are running for non-US orders, but there is no urgency. The days are easier, but not comforting for Poonam Yadav, a stitcher. "Fabric has come but the manager is going slow with stitching work. There's normally pressure to complete 10 pieces a day. Now, five seems to be fine. It shows something is wrong," she said.Garment workers are confused about US tariffs and their implications, but fewer working hours and slower shifts have fuelled a growing sense of unease.

Till last month, orders were being completed by working overtime as exporters rushed to ship consignments before the additional 25% tariffs came into place. It led some of them to believe this would perhaps be a bumper season. Instead, over the last 10 days, a slowdown set in.

At a unit in Sector 4, lunchtime conversations are filled with speculation. "We heard a list of low-output performers is being made because job cuts are coming because of Trump's decision," said Gyanesh Kumar. Whispers have reached labour contractors too. Dharmendra Nagar, who supplies workers to factories in Noida, said, "New hiring is on hold, and it seems even some existing staffers may not be retained after Sept if the tariff situation stays the same." He said there were many families where both husband and wife work in garment factories. Tikaram, manager at an export firm in Sector 59, said companies have cut back even on skilled labour hired per piece to protect margins. "During peak season, around 30-40 extra skilled labour is usually hired, but not this time," he said.The HR manager of a garment firm said senior management had told them to quash rumours of layoffs and keep morale high. "We have been told talks are on with govt and a solution will come soon," the manager added.