More weigh whether to lay off workers

About a third of Colorado businesses have laid off or furloughed workers, about 14% are considering it and just over half said they don’t have any plans to cut staff in the near future, according to a statewide survey from the Colorado Chamber of Commerce.

The survey of 50 businesses conducted Wednesday and Thursday is the second in a series. About eight in 10 of those responding described their business as “essential” or “critical” under the statewide shelter-in-place order.

That means the survey largely captured businesses still operating and able to answer a survey, and not so much the places that have shut down, hotels, retailers, salons, dental offices and event venues.

Of those surveyed who had furloughed workers, 56% had sidelined a quarter or less of workers, while 12.5% had cut 75% or more of their workers.

A steady stream of layoff and furlough notices continue to flow into the Colorado Department of Labor this week, many from hotels and auto dealerships. Some recent job reduction notices include Mercedes-Benz of Littleton, which dismissed 61 workers; Mile High Honda/Acura, down 63 workers; Doubletree Denver Tech Center, down 87 workers; Doubletree Grand Junction, down 52 workers; the Renaissance Hotel Denver Downtown, down 111 workers; and The Jacquard Hotel & Rooftop in Cherry Creek, which dismissed 102 workers.

If social distancing and limits on crowds become the new normal, about 28% of the businesses surveyed said they would fail in under 18 months. About 4% said it would take under three months, while 10% said in less than six months.

About a third of businesses surveyed plan to avail themselves of the CARES Act and other governmental assistance, while about half aren’t sure and 14% have no plans.

A survey by the Colorado Restaurant Association last month found that its members cut 60,000 jobs and lost an estimated $465 million in sales, which declined 51% between March 1-22. Eight in 10 had laid off employees by that point, and 56% percent were considering new or additional layoffs in the coming month. About 2% had permanently closed and another 14% thought that might be their fate within the next month.

A lot of businesses have already shut down, and those left open have shifted into a waiting game, trying to outlast the pandemic and restrictions on movement. Homebase, a provider of time management software, reports that 46% of its Colorado clients, who are mostly small businesses, were shut down as of Wednesday. But that’s down from 50% on March 29.