Covid-19 has damaged the economic balance of even the biggest superpowers of the world, wherein businesses are struggling to survive in the present times. There is almost a shutdown to every business operation, with only minimal trade activities taking place.
In such a scenario, most of the big and small companies are fearing a lack of business continuity in the coming times. It’s almost three to four months since the pandemic has sprawled across the globe and posed a significant lockdown everywhere. The companies are either laying off their staff or cutting on wages already.
CEOs plan layoffs amid Coronavirus crisis
Even though most of the companies have pledged to support the employees and workforce in times of crisis, job cuts are inevitable. As companies lose business, and there is a lack of cash flow, there is no choice left with the management to expel employees and cut the salaries.
A survey by “The Conference” Shows CEO confidence dropped
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As per a study, around 54 percent of the CEOs in the United States have talked about planning to layoff or furlough their workforce in the mid of the coronavirus pandemic crisis. In a survey by The Conference Board, more than 43 percent of the people who took part in the survey said that there is a plan to cut wages, employee benefits, and Salaries.
Layoffs and Furlough on the way
The chief executive confidence has dropped massively, keeping in view the unprecedented downtimes due to the virus outbreak. There is a sharp chance of more than 50 percent of the CEOs planning to furlough or fire the workers. The survey was conducted on the chief executives in the United States about the impact of the virus crisis on the business and their plans to respond to the damage faced.
Staggering impact on the businesses
After the great depression, it is for the first time that the economy has gone through such a massive turmoil. More than 80 percent of the businesses have hit by COVID-19, and the consequences look scary as the months unfold.
CEOs fear Cash Flow Deficit
Around four out of every five top executives mentioned the delay in the investment plans, and more than 43 percent are prepared to encounter the cash flow issues in the coming times. It is evident that the businesses will be hit financially in the most damaging way.
The Conference Director Speaks of the Survey Outcome
The Senior Director of the economic indicators and surveys at The Conference Board, Lynn Franco, said,
“The sharp fall was driven by a dramatic deterioration in sentiment about the current state of the economy. So it comes as no surprise that more than 80% of these executives said COVID-19 has substantially impacted their business”.