More than 12,000 people in the UK are set to lose their jobs after a number of firms announced cuts in the last two days.
The cuts are mainly being made by high street retailers and in aviation; two of the sectors hardest hit by the coronavirus lockdown. Some well-known names include EasyJet, Harrods, John Lewis, and WHSmith. The businesses' redundancy plans come ahead of the government's planned paring-back of the Coronavirus Job Retention Scheme.
From 1 August 2020, employers must pay National Insurance and pension contributions, as they are no longer able to reclaim them from the Scheme. From 1 September, the government's contribution towards furloughed staff's pay will drop to 70%, then to 60% from 1 October, meaning employers will need to pay increasing amounts over the coming months.
It is clear that businesses are being forced to cut costs dramatically to survive, and that inevitably means job losses. It will be a very stressful time ahead for employers and employees.
The redundancy plans come ahead of the government's planned paring-back of the furlough scheme, which is currently paying 80% of the pay of staff kept from their work.