HomeInsightsSeven in 10 firms set to make redundancies

Seven in 10 firms set to make redundancies

Nearly seven in 10 employers expect to make redundancies within the next year, with the majority of job losses set to take place within the coming months.

According to the study from Renovo, 69% of all UK employers anticipate making job cuts, with 46% expecting to make redundancies within six months. Some 23% of organisations anticipate making redundancies within six to 12 months.

Of the companies expecting to make redundancies, 84% have employees on furlough. The Coronavirus Job Retention Scheme closed on 30 September.

The Renovo research also found that 56% of employees surveyed who are worried about being made redundant within the next year are not on furlough.

“Despite positive signs in the UK employment market, there remains a high level of pessimism and uncertainty at both the employer and employee level – the study shows that the perceived threat of redundancy remains incredibly high,” said Chris Parker, managing director at Renovo.

“In particular, at the employer level, there is a high correlation between those with employees currently on furlough and high levels of expected redundancies in the next year.

“However, employers must be aware that due to events in the last 18 months, perceptions of job security aren’t only an issue for those on furlough right now.”

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