Jobs Affected due to Coronavirus– International Labor Organization – The ILO stated that COVID-19 is having an adverse effect on workers and employers with massive losses.
The world is facing the worst global crisis since the World War-ll. The economic impact of this pandemic is likely to be severe and sustained. The ILO collaborates data from India which shows how unemployment has tripled in rural and urban areas within a span of 3 weeks.
ILO said due to the most severe crisis after World War-ll the employment losses are rising rapidly at global level. Manufacturing, Wholesale and Retail trade, Real estate, Accommodation, and Food services which account for 38% of global workforce, were being hit the most.
Economists and Worker groups have warned that things may worsen in India so they need to be prepared for it by having some modified techniques.
The companies were implementing different policies in order to cover up the losses and to protect the financial position of the company.
Many business leaders who have cut their salaries to 0$ to help their struggling employees, workers while some of them introduced the pay cut in the salaries of their employees like
Delta Airlines– On 13th March, Delta Airlines CEO Ed Bastian sent a memo to all the Delta employees updating them on how COVID-19 is impacting the company.
Bastian said that Delta would offer voluntary short term, unpaid leaves and institute an immediate hiring freeze. He also announced in a memo that he would be giving up 100% of his salary for the next 6 months.
Alaska Air Group
Alaska Air Group– In a memo released on 16th March, Alaska Air Group- the Parent company of Alaska Airlines laid an update on its financial and operational outlook during this pandemic. This included offering employees unpaid leaves of absence for 30-,60- and 90- days time frames and freezing hiring except for essential roles.
Marriott– In a video message, Marriott CEO and President Arne Sorenson responded to the coronavirus and it impacts the company, suspending new hires except for the critical position and stopping all hotel initiatives for 2020. In addition, he said that he will not be taking a salary for the balance of 2020 while his executive team takes a 50% pay cut.
General Electric– The Chairman and CEO H. Lawrence Culp released a statement to employees about how it is handling the economic impacts of this virus. The company will reduce its total US workforce by 10%.
Union Square Hospitality Group
Union Square Hospitality Group– Danny Meyer, the CEO of USHG donated his entire compensation to USHG and at the same time he laid off 80% of company staff. He also stated that a relief fund will be set up for his workers.
Disney– Bob Iger, the executive Chairman of Disney has forgone his salary for the remainder of the year. Bob Chapek who recently succeeded Iger as Disney’s CEO will be taking a 50% pay cut according to the reports, all VP level executives will be receiving a 20% cut in their salary while the Senior VPs will see a 25% cut.
Airbnb– The CEO of Airbnb, Brian Cheeky has given up his salary for the remainder of the year to help his company and to protect the financial position during this pandemic to avoid the layoffs.
This pandemic is a disaster for all the small businesses because all the resources were completely stopped and this had some negative mental effects also like it will reduce the creativity, effectiveness, and productivity of the employees and workers.
Impact On Future
- Growth in AI- More and more AI companies will be set up in order to create more powerful and reliable artificial intelligence programs so that it will enhance the working scenario.
- Companies will prefer more automation in their production, manufacturing, or packaging instead of the human workforce.
- Rapid growth in the robotics sector, the manufacturing companies will be producing more advanced robots that can handle more critical situations.
- Due to the advancement in the methods, there will be more inventions and the creation of new technologies especially the prototypes which are under observation will come into existence.