The UK’s largest companies cut tens of thousands of jobs. Millions more are at risk

Last move came from oil major on Monday BP (BP) and luxury goods manufacturer Mulberrysaid that 15% and 25% of global companies labor, respectively. It means 10,000 jobs at BP and 350 mulberries.

Large companies in the UK now have more than 75,000 cuts in the pipeline, while partial deadlocks and social distances are expected to continue in the summer. Smaller companies also crash, leading to hundreds of thousands of job losses.

British Airlines (ICAGY) dr-d Dismissing 12,000 peopleMore than a quarter of the workforce in response to the severe drop in travel demand during the pandemic. Competitor carriers easyJet (ESYJY) and untouched atlantic will tremble 4500 engineering and aviation company, 3,000 positions respectively Rolls Royce (RYCEF) cuts 9,000 jobs. Parts supplier MEGGITT (MEGGF) it reduces the workforce by about 1,800.
Niche car manufacturers have also been hit, things are going on at Bentley (1,000), McLaren (1,200) and Aston Martin (500). HSBC (HBCYF) It announced it would cut 35,000 positions in February, but has since avoided forcing most of these surpluses to seek a new job during the outbreak.

The UK government’s data has not captured hundreds of thousands of jobs cut so far in April.

Europe's stimulating fireworks shows: ECB and Germany throw new wall of money into the economy

According to official data, the UK unemployment rate fell below 4% in March. But more timely indicators, including April, give an idea of ​​the impending business crisis. According to government data, the number of workers on company payrolls fell more than 450,000 between March and April.

The worst will almost certainly come.

About 8.7 million workers in the UK emerged as part of a program that covered 80% of government salaries. However, support will end in August until the program ends in October, and businesses face a collapse in demand, and companies may find it difficult to find jobs for many angry employees when they return.

See also  German military rabbis to re-launch for the first time since the 1930s

“Business leaders know that government support cannot be infinite, but the ugly truth is that if money isn’t coming to the door, many companies will have to make tough decisions in August,” said director of the institute Jonathan Geldart. said.

Restaurant and bar owners say social distance can destroy their industry
In a survey of 700 company managers, about a quarter said they could not make any contribution to the salaries of angry workers between August and October. institute said.
Restaurants, pubs and bars can be particularly hard hitting. Telegram Reported on Monday British Prime Minister Boris Johnson said that after deciding that 3.5 million jobs in the industry are at risk, he decided to bring the hospitality sector reopening to the end of June from the beginning of July.

Andrew Wishart, the economist at the British Capital of Economy, wrote last month that he expects the unemployment rate to increase to 9% in the coming months. “Most of these leaps should be reversed quickly once the deadlock is over, but we still expect the unemployment rate to rise in the next few years,” he said. Said.

You May Also Like

About the Author: Abbott Hopkins

Analyst. Amateur problem solver. Wannabe internet expert. Coffee geek. Tv guru. Award-winning communicator. Food nerd.

Leave a Reply

Your email address will not be published. Required fields are marked *