S Alam Group has laid off more than 4,000 workers across its Chattogram manufacturing operations, marking the latest blow to the embattled conglomerate following months of severe production halts, raw material shortages, and banking restrictions.
Layoff notices posted on Thursday took effect on Friday, sweeping through virtually all of the group’s manufacturing hubs in Karnaphuli Upazila, spanning 11 companies. Executive sources confirm that only essential personnel, primarily security and basic support staff, have been retained. Operations at select plants elsewhere in the country have also been hit by the redundancies.
The mass retrenchment caps a steep decline for the industrial giant following the political upheaval of 5 August 2024. S Alam had previously announced the indefinite closure of nine factories employing roughly 13,000 personnel on 24 December. Although operations briefly resumed in early January 2025, persistent import bottlenecks and restricted credit lines prevented plants from returning to full capacity.
The crisis hits a wide swath of the group’s industrial footprint, primarily clustered in the Moizzartek industrial belt along the southern bank of the Karnaphuli River. The list of impacted entities spans virtually the entirety of its manufacturing operations, sweeping through S Alam Refined Sugar Industries, S Alam Cold Rolled Steels, S Alam Steel, and Infinity CR Strips Industries, alongside Chemon Ispat, Galco Steel, S Alam Bag Limited, S Alam Cement, and S Alam Vegetable Oil.
Raw material freeze and banking gridlock
Dismay spread across factory floors on Thursday afternoon as notices listing terminated staff were pinned to board walls. At S Alam Refined Sugar Industries, emotional scenes unfolded as workers learned the cuts were part of a sweeping shutdown.
Rafiqul Islam, Deputy General Manager at S Alam Refined Sugar Industries, confirmed that operations have ground to a complete halt. “All production has ceased. With no work ongoing, management has asked staff to head home,” he said.
Speaking on condition of anonymity, a senior executive disclosed that the firm was forced into layoffs after exhausting its raw material reserves and finding itself unable to open letters of credit (LCs) for new imports.
Sources at the sugar mill noted that the facility had been operating on fumes for nearly two years. The final blow saw 386 staff let go, following earlier redundancy rounds of 15 and 40 workers. Management assured that all affected personnel are receiving outstanding wages, allowances, and statutory severance.
As the financial stranglehold tightened post-August 2024, the group attempted several brief restarts using residual stock. However, inability to secure imported inputs triggered cascading job cuts in batches of 300, 400, and 500, culminating in Thursday’s blanket notices terminating employment from 1 August.
Legal and financial net tightens
Superintendent of Police Mahamuda Begum of Industrial Police-3 Chattogram stated that authorities are monitoring the situation. “We have reports that several laid-off workers collected their dues on Friday. However, we await official confirmation from management regarding the full status of all facilities.”
The industrial meltdown comes amidst intense regulatory pressure following the 2024 political shift. The Anti-Corruption Commission (ACC) has filed a barrage of cases against Chairman Saiful Alam, his family, and key associates, alleging widespread loan fraud, embezzlement, and money laundering.
Meanwhile, the Bangladesh Financial Intelligence Unit (BFIU) estimates that the group siphoned roughly Tk 2.25 lakh crore overseas via front companies and dubious loans. Authorities are actively pursuing the recovery of domestic and offshore assets, with international freezes already underway.
