Many of the companies given permission to resume operations during Shanghai’s lockdown are working at a fraction of their full capacity as broken supply chains and disrupted logistics continue to hobble a recovery of the business sector, reports the South China Morning Post. The dire scenario, revealed by company executives and business surveys, has exacerbated worries about the potential severity of an economic slowdown and the scale of job losses that may result.
Two company officials with key manufacturers on the Shanghai government’s so-called white list said they would have to slash jobs even after the lockdown is lifted.
The damage to their business operations caused by the lockdown has been too savage to absorb, they said, resulting in redundant capacity at the manufacturing plants.
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