One in three British companies “plan to make redundancies”


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One in three UK employers plan to lay off staff between July and September, according to a survey.

Research from the Chartered Institute of Personnel and Development (CIPD) and recruiter Adecco shows a 50% increase in the number of employers planning to cut jobs compared to three months ago.

In the private sector, 38% of companies plan to make redundancies, compared to 16% in the public sector.

Companies planning to hire increased, but the numbers were down from previous years.

‘Dark autumn’

There have been a growing number of job cuts as the coronavirus pandemic wiped out more than a quarter of UK economic output.

In the month leading up to July 9, more than 2,000 employers were asked if they were considering laying off.

While 33% said they expected to let go of staff, 49% said they plan to hire within three months until the end of September.

This indicates an increase in confidence from the previous quarter, when only 40% said they plan to hire new staff.

However, that figure was still “well below” levels seen in previous years, the report’s authors said. And the proportion of employers planning to hire, compared to those planning to lay off staff, has fallen to its lowest level since 2013, when the survey began in its current form, they said.

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Gerwyn Davies, CIPD adviser, predicted a “dark fall for jobs”.

“This is the weakest dataset that we have seen in several years,” he said.

“Layoffs so far have been low – arguably due to the job retention program – but we expect to see more layoffs this fall, especially in the private sector once the scheme is closed. .

“Confidence in hiring increases temporarily, but this is unlikely to be enough to offset the increase in layoffs and the number of new graduates and school leavers entering the workforce in the coming months.

It comes as data from the Center for Retail Research suggests more than 22,000 restaurant jobs have already been cut this year. That’s more than double the number announced throughout 2019.

Last week Pizza Express said it was planning to close 67 of its UK restaurants, which would mean the loss of 1,100 jobs.

Meanwhile, Byron announced 651 job cuts; the Casual Dining Group, which owns Bella Italia and Cafe Rouge, will put 1,909 jobs out of work and Upper Crust owner SSP has said 5,000 jobs are at risk.

It comes as figures obtained by the BBC showed the number of companies which informed the government in June of their intention to cut 20 or more jobs was five times higher than the same month last year,

An access to information request shows that as of June 1,778 companies said they intended to cut more than 139,000 jobs in England, Wales and Scotland. In June 2019, only 345 companies planned to cut 24,000 jobs.


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