The coronavirus is still making its rounds across the world, introducing new and unique challenges for businesses. No business has truly been unaffected by the virus, and the effects will spur years of lasting change. But which businesses have been affected the most?
Local Businesses Are Making Tough Cuts
The small mom and pop stores have had to make their cuts, laying off (and sometimes firing) employees. Bigger businesses have been doing the same, but there is a major difference between the roster size of these types of businesses. A larger company can lay off half its workforce and remain operational. Major hotels are a good example of the type of business this would apply to. Although they have laid off a significant portion of the workforce, they can still remain functional and make money.
A local business is faced with a much different scenario. Some can’t afford to pay workers while business is slow, which leads to getting laid off or fired. Health insurance is a big deal and plays an interesting role when local businesses have to consider cost-cutting. Even when things go back to normal, local businesses may not have the funds to rehire laid-off workers.
The Travel Industry Is In Freefall
Hotels, planes, greyhounds, and trains are all losing millions of dollars each day. Any gathering of more than ten people is hard to justify, with mandatory lockdowns taken place in many countries. Borders are being closed and restricting specific work-related travel.
With the travel industry, the biggest hit in all of this is the trickle-down effect. Multiple individuals, companies and countries are connected. This includes government workers that are being called back from their assignments early. There is a mandatory quarantine period before takeoff and after landing. In short, that means the airlines are backed up with business but not making any money.
On a smaller scale, Uber and Lyft drivers are finding it difficult to get work, and have moved over to food delivery. This works hand in hand with restaurants that are only offering drive-through services.
Online Businesses Are Surging
When possible, companies have allowed their workers to continue employment from home. This is the biggest news about the outbreak and a stunning look into the future of employment. Companies that were flirting with work from home positions are now forced to adapt, or close shop for the foreseeable future.
The market is still small for this type of work, with industry giant Amazon being the biggest name in the mix. Their resources are being pushed to the max, and in turn they are enjoying a massive surge. Smaller online companies are also enjoying additional income, exposure and increased buying rates.
Since concerts and sporting events have mostly been canceled many have moved to a streaming format. If the numbers come back good, then it will open up an inventive new way to handle contact sports and entertainment during the outbreak.
When everything gets back to normal, there will be a few major changes in the most profitable businesses worldwide. Workers make up the bulk of a company, and many of them will have moved on to new careers. The best thing a company can do is provide training for similar worst-case scenarios in the future.