44% of SMEs plan to cut jobs this year

The coronavirus quarantine hits SMEs harder than it does large companies.

This is reflected in a survey by the Ieral, of the Mediterranean Foundation, according to which 44 percent of companies with less than 100 employees this year plan to reduce their workforce in both moderate and considerable ways, while in companies with more than 100 employees would make the same decision 35 percent.

Keep in mind that the drop in sales was greater in SMEs than in medium and large companies.

The survey shows that 47 percent of the first group registered a “considerable” drop compared to the same period of the previous year, while the same situation was reflected in 26 percent of the second group. But 25 percent of SMEs and 41 percent of medium and large had “moderate” falls.

If taken as a whole, SMEs and medium and large, 73 percent of the surveyed companies decreased their sales, 12 percent remained constant and only 15 percent increased.

According to the study, until May 18 percent of companies remained inactive and 28 percent were fully active.

Likewise, 36 percent were only partially active and the remaining 18 percent were also partially active but only by telecommuting.

As for expectations about the general situation for the year, among SMEs 76 percent estimate that the year will be worse than 2019 and only eight percent expect the situation to be better. Among the big ones, 68 percent are pessimistic.

The most unfavorable expectations are in profitability. While 85 percent of SMEs expect a decrease, among large companies, the same projection has 73 percent.