Half of Czech companies plan lay-offs

Close to half of Czech firms say they are planning lay-offs in the coming months in order to mitigate the effects of the economic crisis and increase their chances of survival. In a flash poll conducted among 154 companies, a third of them said they may have to lay off up to twenty percent of employees, while five percent of them said they would have to let go up to thirty percent of employees to stay afloat. Fifty-four percent of firms polled said they were cutting costs elsewhere. The export-oriented Czech economy is feeling the effects of the crisis in neighbouring states, with eighty percent of Czech firms reporting a severe drop in demand in the first quarter. The credit-crunch is making it difficult for them to take out fresh loans, meaning that some will temporarily have to shut down production if the situation worsens.

Author: Jan Richter