Nearly three-quarters (73%) of CFOs surveyed in all countries express great concern about the potential impact of the coronavirus on their business, with most (80%) expecting a decrease in revenue, according to PwC COVID-19 CFO Pulse, conducted among more than 800 CFOs in 21 countries.
When assessing potential financial actions to help mitigate the effects of the coronavirus, most CFO are considering cost containment measures. Thus 77% considering implementing cost reduction, 65% deferring or cancelling planned investments and 48% changing company financing plans.
„In this environment completely new and uncertain, there are needed tactical and complicated decisions. Many businesses spent the first several weeks of the crisis reviewing continuity plans, establishing crisis command centers, and ensuring the safety and security of their workers. Liquidity concerns are causing many companies to consider worker furloughs, costs and investments reductions. The main concern remains, in this context, the maintenance of jobs until the peak of the crisis is overcome and it will be possible to apply programs to relaunch the activity", said Ionuț Simion, Country Managing Partner of PwC Romania.
Nearly half (45%) of CFOs say their company plans to take advantage of government support programmes offered in response to COVID-19. The most common types of support they are considering are tax payment deferral and extension of tax deadlines.
In terms of workforce, CFOs in all countries expect a range of consequences for the employees: 42% of respondents expect to introduce furloughs in the coming month, and 28% anticipate layoffs.
If the COVID-19 crisis were to end immediately, 56% of CFOs expect a return to ‘business as usual’ within three months.
Other conclusions of the report
The survey was conducted on 14 April among 824 CFOs in Armenia, Brazil, Colombia, the Czech Republic, Denmark, France, Germany, Greece, Ireland, Japan, Kazakhstan, Mexico, Middle East*, Netherlands, Philippines, Portugal, Singapore, Sweden, Switzerland, Thailand and the US.
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Ionuț Simion, Country Managing Partner
Marketing and Communication Leader, Romania