Note

April 14, 20 - 6:16 pm - LABS

Mexican companies plan layoffs and personnel adjustments

As the coronavirus pandemic spreads across Mexico, with currently 5,000 confirmed cases and 332 deaths, companies are making and planning adjustments for the next months.

According to the PwC’s COVID-19 CFO Pulse Survey, 39% of the finance leaders are expecting that layoffs will take place in the coming month, and 30% expect to open applications for temporary leave. This reflects a major change. Two weeks ago, only 16% of finance executives in the US and Mexico expected layoffs, while 44% forecasted temporary leaves.

The results also show restrictions in the labor supply. More than half (55%) of the executives anticipate that the lack of remote work skills will lead to a loss of productivity, and 27% expect that the lack of qualified staff could hinder the performance of essential tasks. This indicates that companies are having to make difficult decisions: cost reduction versus maintenance of teams that will be fundamental later for the resumption of activities.

“Around 27% of the companies consider that it will take between one and three months to reach a certain normality of what the economic and business situation was (before the pandemic). However, 33% consider that this period can range from three to six months, and 30% that the recovery will take place between six and 12 months”, Mauricio Hurtado, partner director at PwC, told Milenio.