The Private Enterprises Federation (PEF) has warned of more layoffs as financial situations of private companies worsen because of COVID-19.
Most businesses have been forced to shut down their operations while others have cut workers’ salaries to mitigate the shock.
Speaking on JoyNews, the Chief Executive Officer of PEF, Nana Osei Bonsu said layoffs are inevitable during the pandemic because firms are struggling to stay in business.
He intimated that although firms are finding innovative means to survive, they are currently under pressure.
“If you’re not selling, you’re not creating any income stream…So there’s no activity, no patronage, no income stream and if you don’t have income stream and you paying employees, you’re paying out of reserves. How long is your reserve going to do what it needs to be done? And if after two months there’s no more income and maybe not everyone is going to qualify for the GHC600m package. So if you don’t qualify what are you going to do? Layoffs are inevitable,” he said in the interview.
Meanwhile, the Ghana National Chamber of Commerce and Industry (GNCCI) has revealed that about 108 businesses have lost a minimum of GHC39.8 million within three months and the estimated financial cost differs from one firm to the other.
Also, the President of the Automobile Dealers Union says about 90 percent of workers in Ghana’s car dealership industry have been laid off in the wake of the pandemic.