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One in three UK SMEs plan 45% redundancies, survey reveals

One in three UK SMEs plan 45% redundancies, survey reveals
One in three UK SMEs plan 45% redundancies, survey reveals

As per a new survey, a third of small businesses across the UK are reportedly planning to lay off employees in the next couple of months, with more than four out of ten in London firms intending to take the step.

Being felt stretched thin by financial difficulties, many small firms in the country claimed that they will be strong-armed to boost prices, citing Britain's supply chain woes as the key reason, further fueling inflationary pressures.

Many of the 442 businesses polled were found to be struggling with the debt they incurred through the course of the pandemic, and managing other issues such as supply chain disruptions, unavailability of critical personnel such as chefs and drivers, as well as high energy prices.

Another survey has revealed that thousands of enterprises, particularly large corporate organizations, repaid existing debt significantly faster than projected in 2021, revealing a distinct gap between the losers and winners in the pandemic.

Studies predict that UK companies would repay £1.6 billion in 2021 after borrowing £35 billion in 2020, with the majority of the money coming from companies that have performed successfully in the last 20 months.

The completion of the furlough scheme in September, combined with newly added rules regarding the new Omicron variant, has also significantly weakened many city-center stores dependent on commuters and made life much harder for the hospitality industry including nightclubs, tightening the screws even more on many smaller companies.

Companies in London were far more likely than those in the rest of the United Kingdom to be mulling layoffs, with 42% contemplating it. This is probably due to the impact of the Covid-19 outbreak on the finances of the hospitality industry, which accounts for a large portion of London's economy.

Small firms in the United Kingdom planning layoffs were considering laying off 45% of their workforce during the coming six months on average.

Source credit: https://www.theguardian.com/business/2021/dec/13/one-in-three-uk-small-firms-plan-major-staff-cuts-survey-reveals

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.