Dismissals and Temporary Leaves in Romanian Companies in the Context of Low Demand and Cash Flow Problems during the COVID-19 Economic Lockdown

The aim of this study is to describe the relations between low demand, cash flow problems, employee dismissals, and temporary leaves experienced by Romanian companies during the economic lockdown in the first two months of the COVID-19 pandemic outbreak in Romania (16 March–16 May 2020). For this pu...

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Bibliographic Details
Published in:Sustainability 2020-11, Vol.12 (21), p.8850
Main Authors: Turnea, Elena-Sabina, Neștian, Ștefan Andrei, Tiță, Silviu Mihail, Vodă, Ana Iolanda, Guță, Alexandra Luciana
Format: Article
Language:English
Subjects:
Absenteeism
Blood & organ donations
Cash flow
Consumption
Coronaviruses
COVID-19
Economic impact
Employees
Epidemics
Financial management
Labor market
Literature reviews
Pandemics
Quarantine
Restaurants
Restrictions
Severe acute respiratory syndrome coronavirus 2
Shopping centers
State of emergency
Sustainability
Tourism
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Summary:The aim of this study is to describe the relations between low demand, cash flow problems, employee dismissals, and temporary leaves experienced by Romanian companies during the economic lockdown in the first two months of the COVID-19 pandemic outbreak in Romania (16 March–16 May 2020). For this purpose, we conducted a quantitative study using descriptive, correlation, and regression analyses applied to data collected from company decision-makers. Our results show that demand for products/services and cash flow in companies has decreased significantly, the workforce being affected by dismissals and temporary leaves/furloughing. Additionally, the average linear revenue of companies has been decreasing due to insufficient cash flow, higher absenteeism of workers, customers having been affected, and the demand going down. Therefore, employee dismissals, employee temporary leaves (furlough), and dismissal intentions have been positively correlated with insufficient cash flow in companies and an extremely low demand.
ISSN:2071-1050
2071-1050
DOI:10.3390/su12218850