Nearly two-thirds of entrepreneurs expect layoffs, Romanian Business Leaders survey shows
An internal survey by Romanian Business Leaders, which does not have national representativeness but was answered by 417 entrepreneurs, shows that 62% of entrepreneurs expect to have to make layoffs, while a third expect the number of employees to remain the same.
The expected layoffs are directly connected to the possibility of Romania choosing a president who may direct it away from the European Union, according to the survey.
Among the entrepreneurs who believe they will be forced to lay off staff:
- 12% expect to have to lay off under 10% of their employees,
- 41% between 10% and 20% of their employees,
- 28% between 20% and 30%,
- 10% between 30% and 40%,
- and 9% over 40% of their employees.
Only 5% believe they will have to make new hires.
"An unstable political climate, dominated by anti-investment discourse and populist economic rhetoric, will have direct and serious consequences on the real economy. Romanian Business Leaders warns that, in the event of decisions that divert Romania from its European and Western commitments, many entrepreneurs anticipate that they will be forced to resort to layoffs to protect business sustainability," the organization states, cited by News.ro.
It is important to note that, among the entrepreneurs considering layoffs, 72% are microenterprises (under 10 employees) and small companies (between 10 and 50 employees), while 28% are medium (between 50 and 250 employees) and large companies (over 250 employees).
At the same time, 69% of entrepreneurs expect employees’ purchasing power to decrease significantly, and 18% expect it to decrease slightly.
"The business environment cannot function in a politically and economically unstable, isolated, and internationally non-credible climate. Stability, predictability, and firm membership in the Euro-Atlantic space are essential conditions for preserving jobs, economic growth, and sustainable development. That is why the entrepreneurial community unequivocally reaffirms that Romania’s path must remain clear and irreversible: for the EU, for NATO, for the OECD. These anchors define the present and future of a democratic and prosperous Romania," stated Romanian Business Leaders.
The Romanian Business Leaders Foundation is an impartial, apolitical organization.
(Photo source: Tero Vesalainen | Dreamstime.com)
