40% companies prepared to layoff due to coronavirus

About 40 per cent companies responding to a corporate survey estimated their position to be rather or very much weakened by the coronavirus outbreak while another 40 per cent considered temporary layoffs or permanent redundancies, according to the results of the survey on COVIT-19 published by the Confederation of Finnish Industries -EK recently.

About 87 per cent respondents feared it to have at least some negative impact on their operations and financial position, said EK in a press release.

The corona epidemic strikes Finnish employer companies with force. Companies of all sizes, sectors and regions are affected. Nearly 90 per cent of them see the disadvantages of the COVIT-19 in their business. They expect the Finnish state to provide the support, response and flexibility needed in times of this crisis.

EK has launched regular COVIT-19 corporate surveys with more than 780 entrepreneurs and business executives responding to this first survey conducted on March 12 to March 16.

The survey results, however, reflect the situation before the companies knew about the emergency conditions declared by the government.

More than half of the responding companies have taken at least some precautionary measures to minimise disruption caused by coronavirus.

The bigger the company, the more likely it is to be prepared for the situation. About half of the responding micro-enterprises with fewer than 10 employees have taken preparedness measures and virtually all the large enterprises.

Almost 90 per cent of the responding companies consider the support measures taken by the Finnish state quite or very necessary because of the virus. The respondents were quite unanimous regardless of their size.

Tax authorities, financiers and insurance companies are expected to come up with utmost flexibility. Support from the Finnish state is needed in order for the companies to pay salaries. Reductions in employer contributions and sick pay costs are called for, as well. The views were critical on the authorities’ insufficient guidance regarding the COVIT-19 situation.