Two in five businesses cut jobs

Two-in-five businesses expect to cut jobs A survey by the ICAEW of 800 senior finance executives at UK companies found 40% expect to cut jobs in the next six months as a result of the coronavirus slowdown. One third had already cut jobs, with two-thirds of these saying the reason was due to a drop in demand and 59% said it was to increase efficiencies. Some 54% said their organisation had furloughed staff. Just over a quarter (28%) of respondents said their organisations were hiring, while 27% said their firms had a recruitment freeze. The measures taken by the Government to protect jobs were approved by 76% of respondents. Iain Wright, ICAEW director for business and industrial strategy, commented: “Our members give government credit for preserving jobs so far, but they believe that a hard landing for the economy is only months away, and that employment will be badly hit. Some of this will be because market demand is weaker, but the crisis is also driving companies to become more efficient. This may improve productivity, but it will cost jobs.”