39% CEOs Freeze Hiring; Over 45% Plan Job Cuts In Next 6 Months Amid Recession Concerns: Survey

A worrying KPMG report revealed that 46% of chief executive officers are considering workforce downsizing over the next six months, while 39% have stopped hiring.

Representative Image

"With continued economic turmoil, there are signs the Great Resignation could be cooling down, with 39% of CEOs have already implemented a hiring freeze, and 46% considering downsizing their workforce over the next six months.?However, the three-year view is more optimistic, with only 9 percent expecting a further reduced headcount," according to the KPMG 2022 CEO Outlook report.

The research conducted by KPMG included 1,300 CEOs from the largest corporations in 13 different markets, including Australia, Canada, China, France, Germany, India, Italy, Japan, Spain, the United Kingdom, and the United States.

Unsplash/Representational Image

CEOs from various industries, including management, automotive, banking, consumer and retail, energy, infrastructure, insurance, life sciences, manufacturing, technology, and telecommunications, were asked about their perspectives on strategy and outlook for the coming year.

According to the report, most chief executives anticipate a mild and brief recession in the global economy over the coming few months.

shutterstock

It ought to be remembered that central banks all over the world are increasing interest rates to record levels in an attempt to keep up with rising inflation levels.

Experts worry that the actions of central banks, changes in the bond market, the conflict between Ukraine and Russia, and a rising dollar will likely lead to a balance of payments crisis in several countries and the failure of sizable, vulnerable financial institutions.?

As per experts, such occurrences are signs of an impending financial crisis.

Unsplash

Over 80% of CEOs foresee a recession over the next 12 months, but more than 50% believe it will be mild and brief.

"We have had an opportunity to really focus on our employees—to be more open and honest about subjects including mental health and wellbeing. We’ve invested in training our people, pushing for change and updating skills to match our new innovations, digital service portfolio, and changing customer needs. We want our people to move with us," CEO of Ricoh Europe, Nicola Downing, was quoted as saying.

"Fourteen percent of senior executives identify a recession as one of the most pressing concerns today — up slightly from early 2022 (9 percent)," according to the report. "Pandemic fatigue tops the list (15 percent).?

Despite worries about a possible recession, 73% of CEOs are more optimistic now than in February when FMCG last conducted the survey.

For more trending stories, follow us on?Telegram.?