Nine out of 10 medium-sized businesses have made staff redundant due to the Covid-19 crisis, a study suggests.
Just under a third of 500 firms surveyed said they had already made around a fifth of their workforce redundant, despite the Government’s Job Retention Scheme running until the end of October.
More than four-fifths of those questioned by business advisers BDO said they will only be able to continue trading for up to nine months with current funding arrangements.
Medium-sized businesses have taken an average of £21 million in loans as a direct result of the virus, said the report.
While most companies plan to repay the debt, 10% do not expect to be able to pay the full amount back.
Paul Eagland, managing partner at BDO, said: “This data shows us that, while challenges remain, businesses have acted decisively to protect themselves and weather the storm.
“Some businesses have taken on large amounts of debt to survive the crisis, which prefaces a long road to recovery.
“But at the same time, some companies will use this as a moment to rethink their operations and business models.”
Published: 03/08/2020 by Radio NewsHub