Layoffs on the rise

MORE THAN one in three Cyprus Employers and Industrialists Federation (OEB) member companies will lay off staff in the next three months, it emerged yesterday.

OEB’s latest report also said that within the companies that will lay off staff, an average of 11.6 per cent of staff will be made redundant.

The report also suggests a possible cause for the forthcoming redundancies, highlighting reduced turnover for 70 per cent of its 113 member companies in the past 12 months.

In this period, 22 per cent of OEB members saw a reduction in turnover of between 10 and 20 per cent. 

Fifteen per cent of companies saw a reduction of 21-30 per cent and 16 per cent saw a reduction of 31-40 per cent.

Three out of ten companies’ saw no reduction in turnover.

OEB also called on the government to make several recommendations to increase companies’ efficiency and reduce their overheads.

These include, for example, reducing electricity prices for businesses, increasing the bureaucratic efficiency of government departments, providing low-interest loans through the EU and the European Investment Bank, property tax reduction and promotion of development projects.

OEB also highlighted the need to reduce the government’s payroll.