More CFOs Expect to Cut Jobs to Control Costs, Survey Says

(Bloomberg) -- Covid-19’s ravaging of American jobs is poised to ramp up, a survey released today by PricewaterhouseCoopers LLP indicates.

In a survey of more than 300 U.S. chief financial officers, 26% said they expect layoffs due to the financial impact of the new coronavirus. That’s up from 16% two weeks ago when PwC put the same question to CFOs in the U.S. and Mexico.

“The survey is one indicator that the unemployment situation could become more challenging, and not just in the retail sector but more broadly,” said Tim Ryan, PwC’s U.S. chair and senior partner.

The survey showed the likelihood of layoffs depends on the business: 36% of industrial-products CFOs foresee job cuts, compared with 30% of those working at consumer companies and 13% in financial services.

Beyond layoffs and other measures to contain costs in the short term, “CFOs really believe this will have a lasting impact on their business -- it will take longer than expected to return to business as usual,” said Amity Millhiser, PwC’s chief clients officer.

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