National Treasury now estimates that job losses could be between 690 000 and 1.79-million due to the impact of the Covid-19 pandemic on the South African economy.
The 690 000 job losses are likely in the event of a quick recovery; the larger figure is a worst-case scenario.
The sectors that will see the largest impact are likely to be:
- Catering and accommodation; and
- Financial and business services.
Avis Budget Rent-a-Car, part of the Barloworld Group, announced that a total of 978 employees would be affected by retrenchment, according to a Fin24 article. This is nearly half of the employees of the company.
Meanwhile, the Bidvest Group’s shares fell more than 5% on Monday after the diversified services and trading company warned of possible job losses as a result of coronavirus-related disruptions across its operations.
This is in addition to running list of companies in South Africa who have gone into business rescue, or foresee retrenchments and job cuts.
- Phumelela Gaming and Leisure (currently in business rescue)
- Afarak Mogale and Afarak South Africa (currently in business rescue)
- SAA (currently in business rescue)
- SA Express (currently in business rescue)
- Edcon (currently in business rescue)
- Comair (currently in business rescue)
- Tiger Brands
- Cell C
- Pam Golding
- Flight Centre