Third of firms will axe jobs as furlough ends

NEARLY three in every 10 firms expect to axe staff before the furlough scheme ends.

The figure, which would equate to around 400,000 businesses, adds to fears of a jobs bloodbath in the coming months. However, the survey was carried out before Chancellor Rishi Sunak announced a £1,000-a-worker bonus for firms that bring back and keep furloughed staff until January.

The British Chambers of Commerce found 28% of firms had cut their workforce between April and June. But 66% kept staff numbers the same, pointing to some success for the Job Retention Scheme, which is paying the wages of nine million workers.

However, there are concerns about what will happen as companies have to begin paying towards furloughed workers’ wages again from next month – and when the scheme ends in October.

Some 29% of those polled expected to reduce staff numbers in the next three months.

Another 59% aimed to keep

numbers the same and only 12% planned to hire staff.

Hannah Essex, of the BCC, said: “The Government should consider additional support for employers before the autumn Budget to reduce the overall cost of employment and prevent substantial redundancies.” It came as two big firms announced more than 1,000 job losses yesterday.

Buzz Bingo is to permanently close 26 venues, putting 573 jobs at risk.

And fashion label Burberry is to axe 500 staff globally.

The ONS will announce labour market data for July today.