AMU’s Coronavirus Survey: 70% of Companies Considering Layoffs

TIRANA, April 3

A recent survey conducted by the Albania Manufacturers Union (AMU) that aims at tracking sentiment shows that businesses and manufacturers are facing unprecedented disruption to daily operation and finance due to the COVID-19 that can force them to head-count reduction and failure to pay tax liabilities, Monitor magazine reported.

The survey reflects the views of 90 companies, mostly large businesses from a cross-section of industries such as food and beverages, construction materials, textile and footwear manufacturing, recycling, paper, metal, and plastics processing, etc. Most of the respondents say that without official support schemes, their businesses can’t resist more than a month.
According to the survey, the companies reported various issues related to imported raw material supply and declines in buying orders. According to them, this caused a lack of liquidity that could make it difficult to pay tax liabilities and employee salaries.

Main Findings

90 companies
VIP Companies – 27%
Large Companies – 45%
Medium Companies – 28%

Sales
March
61% of companies surveyed said that sales in March declined with over 50%
5% of companies surveyed reported a 100% decline in sales during March

April
21% of surveyed companies expect a 100% decline in sales during April

Monthly wages
63% of surveyed companies can afford to pay monthly salaries for March
18% of surveyed companies said that they cannot afford to pay March salaries
11% of surveyed companies said that they can pay salaries for two months
8% of the surveyed companies confirm that they can pay the staff for more than two months

Employee layoffs
70% of surveyed companies said that they are planning employee reduction
57% of surveyed companies plan to lay off 50%-90% of their staff
11% of surveyed companies said that they will lay off 100% of their staff

Tax Liabilities

77% of the surveyed companies said that they have no liquidity to pay tax liabilities

Moreover, 64 percent of the surveyed companies said that in the current situation they can continue their business activities for one month. Only 13 percent of the surveyed companies said that they can continue their business activities for more than three months.
Meanwhile, only 10 percent of the surveyed companies said that they utilize 100 percent of their capacities.

Source: Monitor