As per a recent survey, 52% of Indian CEOs have agreed that job cuts is now inevitable due to the coronavirus outbreak in India, and globally.
Meanwhile 13 crore non-agriculture jobs are at risk, once coronavirus outbreak ends, and normalcy restores.
CII Snap Poll: 52% CEOs Say Job Cuts Will Happen
CII or Confederation of Indian Industry recently conducted a ‘CEOs Snap Poll on Impact of COVID-19 Lockdown on Industry’, and as per the findings of this survey, more than 50% of Indian CEOs agree on job cuts.
While 47% of the CEOs surveyed predicted that 15% or less job cuts will happen across sectors, 32% of the CEOs said that the job cuts can be in the range of 15-30% in India.
While 10% reduction in revenues is expected, 5% loss in profits have been predicted by the survey.
Chandrajit Banerjee, director general, CII, said4, “The government could announce a fiscal stimulus package for the industry and implement it on a fast-track mode, given that the sudden imposition of the lockdown has significantly impacted industry operations and the uncertainty of a recovery threatens substantial loss of livelihoods going forward.”
What Are The Major Challenges For CEOs?
Among other results, the survey threw some light on the challenges faced by the companies in India.
When it comes to the movement of goods, then 65% of the CEOs admitted that challenges exist right now, while only 35% of the CEOs termed access to manpower as a challenge.
While whopping 80% of the CEOs said that their inventory is lying idle due to the lockdown.
The survey was conducted by asking questions related to job loss and business challenges to 200 CEOs in India.
13 Crore Jobs At Risk
Meanwhile as per samples and predictions by National Sample Survey (NSS) and Periodic Labour Force Surveys (PLFS), it was revealed last month that 13.6 crore jobs are at risk, during the post-corona period.
These jobs are mainly in the non-agriculture sector, wherein there are no written contracts, and job assurity.
Travel industry is one of the key sectors, where millions of jobs are at risk. We have already reported that upto 5 crore jobs in travel sector can be culled, due to the outbreak.
As per Adecco Group India, 8-9 crore jobs can be lost in sectors such as manutacturing of textiles, capital goods, cement, food products, metals, plastics, rubber and electronics.
Auto sector was already reeling under slowdown, and now, the prospects of its revival looks bleak.
We will keep you updated, as more details come in.
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