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Tuesday, June 28, 2022

‘72% of MSMEs will cut headcount to get biz on track’

Among the corporates, 42 per cent responded that they will reduce headcount, while only 18 per cent expect to continue with the existing workforce.

Written by Aanchal Magazine | New Delhi |
Updated: June 5, 2020 3:28:41 am
The AIMO survey, which comprises 46,525 responses from MSMEs, self-employed, corporate CEOs and employees, was conducted online between May 24 and May 30. (File Photo)

A survey by All India Manufacturers’ Association (AIMO), in partnership with nine other industry bodies, has shown that 72 per cent of micro, small and medium enterprises (MSMEs) are of the view that they will definitely reduce their headcount to get their businesses on track, while only 14 per cent expect to continue with the existing headcount.

Among the corporates, 42 per cent responded that they will reduce headcount, while only 18 per cent expect to continue with the existing workforce.

The AIMO survey, which comprises 46,525 responses from MSMEs, self-employed, corporate CEOs and employees, was conducted online between May 24 and May 30.

Salary payments are another major concern faced by MSMEs along with collection of old dues, flow of new orders and EMI payments. The survey showed that 32 per cent are worried about salary payments, followed by concerns over manpower with 20 per cent vote share, and 15 per cent share each for new orders and supply of raw material. The biggest concern among self-employed was their ability to pay EMIs, with 36 per cent stating they had issues with pending collections for work done earlier and also receipt of new orders and profitable price for the business.

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Over 70 per cent loss of employment has already been recorded in Delhi, Gujarat, Rajasthan and Pune during the lockdown against the COVID-19 pandemic, as per a separate survey conducted by Azim Premji University.

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