Over 70% of MSMEs who responded to a survey by the All India Manufacturers Organisation (AIMO) intend to reduce headcount across the board. AIMO received 46,525 responses from MSMEs, corporate CEOs, the self-employed, experts and individuals. About 49% of the survey’s respondents were from MSMEs and 7% were corporate CEOs. “The most striking aspect of the survey was that 72% of MSME respondents and 42% of corporate respondents said they would definitely reduce headcount to get their business back on track. In fact, only less than 20% of all categories said they would continue with the same headcount,” said K.E. Raghunathan, immediate past president, AIMO.
The extent of the job loss will be clearer by the end of August 2020, as most respondents were in the process of gauging how many of their labourers will return and the optimum employee strength required to sustain their business in the near future, the survey said.
Issues likely to be faced during the unlocking period are forecasting demand, collection of pending dues, raw materials along with present interest burden and salary issues.