Half or our workforce is based in Europe and we pay their salaries in local currency.
The moment the referendum was announced earlier this year, the Pound immediately weakened due to the uncertainty of the referendum outcome.
This meant that the cost of our European workforce became 10% more expensive for us due to currency exchange rates.
Now the results of referendum are clear: Britain has voted to leave the EU. The Pound weakened even more due to the huge uncertainty surrounding the future of Britain’s economy.
And our European workforce became 10% more expensive yet again immediately after Brexit was announced.
So that’s already an increase in certain running costs for a small business of 20% in just 6 months.
And that’s not the end. Most of our clients might potentially re-consider their spend budgets. Perhaps not for this year as those have been already signed off but new budgets prepared towards the end of this year for 2017 will certainly take into consideration the uncertainty around Britain’s future.
Uncertainty is not good for business. During any recession, cash is the king. Naturally, all businesses will become conservative and could put many projects on hold.
All of this means that our business needs to get ready too and put any future hiring or unnecessary internal projects on hold too. Chain reaction you see.
Fortunately at Moove, we are always prepared 🙂 For us, it is just part of business life which is why we ensure that we are always well prepared to face challenges like these successfully.
Brexit consequences are immediately tangible. Let’s just hope that the future benefits and advantages will outweigh the current economic hit that we all will feel very soon.