The largest British companies are cutting tens of thousands of jobs. Millions more are at risk

The largest British companies are cutting tens of thousands of jobs. Millions more are at risk

The last moves came on Monday from the oil major BP (BP) and manufacturer of luxury goods mulberry, which said it would reduce 15% and 25% of their total value laborrespectively. This means 10,000 jobs at BP and 350 in Mulberry.

Large companies in the UK already have more than 75,000 job cuts, with more partial shutdowns and social distancing expected in the summer months. Smaller companies are also crashing, adding hundreds of thousands of job losses to the total.

British Airways (ICAGY) is reduction of 12,000 jobsor more than a quarter of its workforce in response to a sharp drop in travel demand during the pandemic. Rivals EasyJet (ESYJY) and Virgin Atlantic will fall out 4500 and 3,000 positions, respectively, while an engineering and aerospace company Rolls Royce (RYCEF) is cutting 9,000 jobs, Parts supplier Meggitt (MEGGF) reduces its workforce by approximately 1800.
Niche manufacturers are also hit hard, with jobs at Bentley (1,000), McLaren (1,200) and Aston Martin (500). HSBC (HBCYF) announced in February that it would cut 35,000 positions, but has since made most of those cuts to avoid forcing workers to look for new jobs during the pandemic.

Data from the UK government have so far not covered the hundreds of thousands of jobs that are likely to be cut in April.

According to official data, the unemployment rate in the UK remained below 4% in March. But more timely indicators, which include April, give a sense of the impending job crisis. The number of workers in the companies’ salaries fell by more than 450,000 between March and April, government figures show.

The worst is almost certain.

Some 8.7 million workers in the UK have been worried as part of a program under which the government covers 80% of their salaries. But as support is phased out from August to the end of the program in October, and businesses face a slump in demand, companies may struggle to find work for many employees when they return.

“Business leaders know that government support cannot be endless, but the ugly truth is that if money does not come to the door, many companies will be forced to make difficult decisions coming in August,” said Jonathan Geldart, director general of the Institute. directors said late last month.

Restaurant and bar owners say social distancing could wipe out their industry
In a survey of 700 company directors, almost a quarter said they could not afford to contribute to the wages of their fuzzy workers between August and October, said the institute,,
Restaurants, pubs and bars can be especially severe, The Telegraph announced on Monday that the Prime Minister of the United Kingdom Boris Johnson has decided to propose the resumption of the hotel sector by the end of June from the beginning of July, after being told that so many 3.5 million jobs in the sector are at risk.

Andrew Wishart, a British economist at Capital Economics, wrote last month that he expects the unemployment rate to rise to 9% in the coming months. “Most of this jump needs to change quickly after the blockade is over, but we still expect unemployment to remain high over the next few years,” he said.

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