Covid-19: Third of Nordic startups expect layoffs

Covid-19: Third of Nordic startups expect layoffs

The Covid-19 pandemic threatens a large number of Nordic startups, with more than a third expecting to have to make layoffs, according to Danske Bank.

Danske Bank has been taking the temperature of the Nordic startup scene during the coronavirus crisis by polling firms through its online hub for connecting young firms with potential employees.

The vast majority - 81% - expect to see income losses, with 69% saying this is now their biggest worry as sales drop and funding opportunities dry up. Meanwhile, 37% expect to have to make layoffs to weather the storm.

Klavs Hjort, head, growth and impact, Danske, says: "In many cases, their financial situation is already fragile, so liquidity shifts - even though for just a few months - can be very critical."

Meanwhile, in the UK a Data & Marketing Association survey shows that organisations already estimate that they’re operating at just over half ‘business as usual’, with only 25% confident they can last longer than six months at the current level.

The DMA is calling on the government to extend its job retention scheme to six months to help firms survive the lockdown and subsequent months needed for revenues to return to normal.

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