business woman in silhouette looking pensive

A PwC survey of chief financial officers finds a big increase from a study just two weeks earlier in the share of CFOs who said that their companies were considering layoffs due to the continuing COVID-19 crisis.

PwC's COVID-19 CFO Pulse Survey, which was released on April 6 as the third in a series started in mid-March when emergency lockdowns began, indicated that 26% of 313 CFOs in the U.S. and Mexico anticipated layoffs due to the crisis compared to 16% two weeks earlier. The survey also found that 81% of respondents expect COVID-19 to decrease their companies' revenue and profits this year.

Financial impacts of the crisis now rate as CFOs' top concern, with 75% citing its impacts on operations and liquidity.

As they continue dealing with the effects of the pandemic, 82% said they were focusing on reducing costs. More than two-thirds (67%) responded that they were considering putting off or canceling planned investments. Most said they were planning to curb costs by halting investments in facilities and capital expenditures, information technology, workforce and other areas.

The latest survey was taken during a week when unemployment claims surged and the small business emergency loan program gained attention as part of the $2 trillion coronavirus relief package passed by Congress.

Tim Ryan, U.S. Chair and Senior Partner, PwC said the discussions are shifting as the pandemic continues with many business leaders concluding that without normal revenue flows they will be forced to make some tough decisions about staffing and costs.

"Unfortunately, it is becoming increasingly difficult for some to avoid reducing headcount given the continued uncertainty around how long the pandemic will last," he said in a statement.

Fewer financial leaders (61%) than in previous surveys feel they can return to "business as usual" within three months if the pandemic were to end immediately, a big drop from two weeks prior. Earlier surveys were more optimistic about chances for a recovery.

The survey also found that the pandemic's effect on workplace investment projections varied considerably by industry sector, with 36% of industrial products CFOsS saying they expect layoffs as compared to 30% of consumer markets and 13% of financial services financial officers.

The first Pulse Survey was conducted March 9-11, 2020 and the second from March 25-27, 2020. Fifty-four respondents of the 313 in the third survey were from Fortune 1000 companies.

MP McQueen is editor-at-large at ALM Media and can be reached at mpmcqueen@alm.com.

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CFO survey finds big jump in companies mulling layoffs

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