Wave of layoffs threatens SMEs
A survey of small and medium-sized enterprises provides information about their current situation. And for many of them, the situation is anything but good. Is there even a threat of a wave of redundancies?
Already 6.5 percent of SMEs have laid off employees - more are planned, and there could even be a wave of layoffs. And a good 34 percent of SMEs feel they receive too little support from the federal government. This is shown in a survey by GRYPS offer portal on the economic impact of the Corona crisis on small and medium-sized enterprises in Switzerland, which was conducted between March 30 and April 2, 2020. In the survey, 270 SMEs participated online.
Loans do not solve problems enough
The problems revealed in the survey are not directly attributable to cases of illness: Indeed, so far there have been few confirmed Corona cases in the participating companies. However, companies will have to prepare themselves for how they will deal with the situation in such cases. Acute, on the other hand, are the consequences of officially imposed business closures on small businesses. "The self-employed in particular are dissatisfied with the limited support and feel their existence is threatened. This is shown by the many personal comments of the SMEs in the survey. Even interest-free loans do not solve the problem for many, as these have to be paid back again," says Gaby Stäheli, co-CEO of GRYPS Offertenportal.
Other results in the survey
- Layoffs: Around 6.5 percent have laid off employees, and over 8 percent plan to do so in the near future
- Short-time working: A good 43 percent have already introduced short-time working, and over 8 percent are planning to do so in the near future.
- Hiring freeze: Around 54 percent have introduced a hiring freeze, with just under 3 percent planning to do so in the near future
- Sales declines: 30 percent of SMEs suffered more than 75 percent sales declines in the Corona month of March.
- Rent reduction: Only just 10 percent have agreed to defer or reduce the rent for business premises, but 18.5 percent still plan to negotiate with their landlord.
The survey shows: Overall, the impact of the coronavirus on the Swiss SME landscape is clearly visible. And some statements from survey participants leave nothing to be desired in terms of clarity: "It's not okay at all, what
is being blindly destroyed here." Or there is also talk of a "state-imposed death blow" for entire companies.
