The Private Enterprises Federation (PEF) has had a take on how more layoffs may be experienced as the financial situations of private companies worsen because of the adverse effects of Novel Coronavirus.
A lot of businesses have been forced to shut down or cut off workers’ salaries due to the pandemic.
Speaking on JoyNews, Nana Osei Bonsu (Chief Executive Officer of PEF) has revealed that layoffs are inevitable during this pandemic because companies are struggling financially.
He had this to say:
“If you’re not selling, you’re not creating any income stream…So there’s no activity, no patronage, no income stream and if you don’t have income stream and you paying employees, you’re paying out of reserves. How long is your reserve going to do what it needs to be done? And if after two months there’s no more income and maybe not everyone is going to qualify for the GHC600m package. So if you don’t qualify what are you going to do? Layoffs are inevitable”.