The rapid spread of Covid-19’s Omicron variant is weighing on U.S. businesses, keeping more workers homesick or quarantined and leading some companies to cut services and reduce hours.
The rise of U.S. Covid-19 infections to record levels in recent days has driven thousands of canceled flights, prompted retailers to train available employees on new jobs, and closed some stores altogether, companies said. The rapidly spreading Omicron variant is hitting businesses at a time when consumers demand products and services.
Small businesses around the country are feeling the impact of the surge in new COVID-19 cases, primarily driven by the omicron variant. The spread of the virus is causing staffing issues, higher costs, and fewer customers, they say.
Some businesses said they have been forced to temporarily shut down because they do not have enough staff to stay open, while others are over-scheduling staff for shifts, just in case anyone gets sick and can’t come in.
Businesses of all kinds have been contending with pandemic-related setbacks for nearly two years, from supply-chain woes and labor shortages to higher costs and shifting government rules. Many businesses closed. But thanks in part to myriad forms of government stimulus and enduring consumer demand, many so far have navigated the pandemic and have even bolstered profits. The fast-spreading Omicron variant presents the latest test.
Lance Lappin, owner of an eponymous hair salon in downtown Manhattan for about 37 years, said that in the past few days three or four customers have canceled appointments saying they had been near someone who had tested positive for Covid-19.
Mr. Lappin said his customer base for years has included many people who worked in offices. But expectations for the return of workers keep getting dashed. Now, “there’s no anchor to even hold on to,” he said. “It’s frustrating and exhausting.”
The World Health Organization said as more countries report cases, the new COVID-19 variant carries a “very high” global risk of surges. Scientists have said it could take weeks to understand its severity, although early indications were that most cases were mild.
The prospect of a fast-spreading variant has raised fears of a return of the sort of restrictions that shut down a swath of industries in 2020.
“Companies at this point have created timelines for people to come back to the office and then delayed them so many times that what I’m hearing is they are looking to not commit until there’s a certainty,” said Jeff Levin-Scherz, a managing director with benefits consulting firm Willis Towers Watson Plc.
More than half of U.S. employers (57%) surveyed by Willis Towers Watson either require or plan to require vaccinations, in a poll released on Tuesday but which was conducted before Omicron was discovered.
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