Covid-19: 380,000 Brazilian Companies Reduced Staff in July

RIO DE JANEIRO, BRAZIL – In the first half of July, 380,000 companies reduced the number of employees in relation to the second half of the preceding month, with 70.8 percent of them reducing their workforce by up to 25 percent. The data are from the Pulse Company Survey: Impact of Covid-19 on Companies, which is part of the Experimental Statistics of the Brazilian Institute of Geography and Statistics (IBGE).

The majority of companies in operation (80.7 percent) retained their staff in the first half of July compared to the preceding half. A 13.5 percent share reported dismissals, and 5.3 percent increased the number of employees.

In the first half of July, 47.4 percent of companies in operation had no significant change in their ability to manufacture products or serve customers, but 41.2 percent reported difficulties, while 11.3 percent reported improvements.

As for access to suppliers, 51.8 percent saw no significant change, while 38.6 percent experienced challenges. Some 47.3 percent of operating companies reported challenges in making routine payments in the first half of July, while 46.3 percent saw no significant change.

Among the actions taken to mitigate the impact of the novel coronavirus pandemic on business, 86.7 percent of companies in operation reported having implemented actions to prevent and maintain extra hygiene measures.

Among the companies in operation, 38.7 percent had employees working from home (teleworking, remote working and distance working), and 22.4 percent anticipated employees’ vacations.

A 32.0 percent share of companies stated they had changed the delivery method for their products or services, while 18.0 percent launched or began marketing new products or services in the first half of July.

Among active companies, 37.6 percent deferred tax payments and 12.8 percent secured an emergency credit line for payroll payments.

In the first half of July, 34.8 percent of companies said they were assisted by the government in implementing emergency measures to fight the pandemic, against a 39.2 percent share of companies in the preceding half.

This perception of government assistance was highest among companies that deferred tax payments (65.4 percent) and among those that secured credit lines for payroll payments (80.6 percent).

Source: Estadão Conteúdo