24% of German companies in Mexico plan to reduce their workforce

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MEXICO –  During the second half of 2020, 23.5% of German companies operating in Mexico will reduce their workforce between 10 and 30%, due to the economic and health crisis caused by COVID-19, revealed the Mexican-German Chamber of Commerce (Camexa).

Based on a survey conducted last July among Camexa's partners, it was refered that 73% of companies have managed to maintain their workforce in the crisis caused by the pandemic. As part of an initiative carried out by the Chamber's Human Resources Committee, the survey highlighted that 67% of affiliated companies estimate that they will reach the end of 2020 without the need to lay off staff.

However, 24% foresee the reduction of staff, while another 10% plan to hire new staff. German businessmen have remained uneasy about government programs to limit private participation in the energy sector, which they have recognized in previous surveys could reduce investments in Mexico.

The body led by Johannes Hauser highlighted that regarding labor agreements of the companies with the employees, 72.5% of the companies did not agree to a reduction in wages or salaries, so that despite the crisis, the payment of workers remains intact.

Source: El Economista