As the lockdown on account of COVID-19 is eventually easing out, several reports reveal how the startup world has faced the atrocities during these tough times. Across the world, there have been layoffs across industries leaving millions of people unemployed. However, several reports reveal that the scenario in Europe hasn’t become as worse as in the other parts of the world as the US.
There are many reasons for this, one aspect that interests us is that most European governments have come forward to help startups and small and medium-sized businesses so that they do not fire staff. They have come up with temporary unemployment schemes or ‘furlough’ schemes such as kurzarbeit in Germany that lets staff join work after the crisis. These temporary layoff schemes provide companies with benefits as they do not have to face the brunt of firing and potential rehiring costs.