Large numbers of businesses adjusting to COVID-19 with layoffs and reducing or suspending operations
TORONTO, April 9, 2020
Follow the Modus Business Monitor, the B2B omnibus service from Modus Research, as we survey Canadian businesses over the coming weeks and months on their response to COVID-19 outbreak and government initiatives.
Unlike many business surveys released these days, our results are based on scientific samples of Canadian business leaders rather than members of lobby groups or the Twitterati.
Business response to the COVID-19 outbreak
Our baseline COVID-19 survey of over 850 Canadian managers and executives (March 25 to 31) reveals the extent of the impact of COVID-19 on Canadian businesses.
- More than a quarter of Canadian employers have suspended operations and a further 1 in 5 are considering or planning to do so.
- Overall, slightly more than half have reduced hours of operation.
- Over two-thirds of employers are requiring employees to work from home.
- Over one-third have laid off employees, while another 1 in 5 are considering or planning it.
Grim expectations for impact of COVID-19 on revenues
The vast majority of businesses expect a negative impact on revenue this year due to COVID-19, while two-thirds are also expecting a long-term reduction
- Fully 90% of businesses expect a negative impact on revenues over the next year due to COVID-19. They are almost evenly split between anticipating a moderate and strong reduction.
- Importantly, Canadian businesses also expect a long-term impact on revenues. Two-thirds say revenues will be negatively affected by COVID-19 over the next 5 years.
Expectations improve to normal for the long-term
While half of businesses expect things to worsen over the next year, the long-term outlook is a return to normal
- The outlook for many organizations over the next year is grim with fully one half expecting things to worsen over the next 12 months.
- However, few are expecting a long-term downturn.
In context, the long-term outlook is similar to recent tracking (albeit slightly more polarized).
About the Modus Business Monitor
These results are from the latest edition of our B2B omnibus – The Modus Business Monitor. For quick and reliable answers from business leaders when you need them, the Monitor is Canada’s only B2B omnibus service. Powered by the Modus Business Panel – the gold standard for B2B research in Canada – this service provides flexible access to business decision-makers.
For more information on this release or to subscribe to the Modus Business Monitor please contact:
President, Modus Research
Phone: 1-800-254-6944 x224
Email: CGraves at ModusResearch dot com
About Modus Research
Established in 2012, Modus Research is a full-service research agency that provides clients with actionable feedback from Canadian enterprises based on scientific samples.