Over 90% of CEOs in the United States are worried about a recession in the coming 12 months, and more than half are considering workforce reductions to prepare for it, a new survey has found.
Consulting firm KPMG surveyed 1,300 CEOs at large companies worldwide for its 2022 KPMG CEO Outlook report and found that 91% believe that there will be a recession in the next 12 months. Of the 400 US CEOs surveyed, only 34% believed that the coming recession would be short and mild.
To prepare for the potential recession, more than half (51%) of US CEOs are considering job cuts in the coming six months, the KPMG survey found. These findings echo similar results from 3,000 managers polled by beautiful.ai, a presentation software provider.
The beautiful.ai survey found that 80% of managers are worried about a recession and how it will impact businesses.
At the same time, 60% of the managers polled agreed that remote workers would be the first to be laid off in case of workforce reductions. Another 20% said they were divided on the issue, while the remaining 20% said that remote workers were unlikely to be affected.
“CEOs are walking a tightrope as they consider a wide range of actions—including workforce reductions—to prepare for a potential recession,” said Paul Knopp, KPMG US chair and CEO.
Seventy-three percent of CEOs who took part in the KPMG survey also believe a recession will upend anticipated growth over the next three years.
These surveys come at a time of global economic turmoil sparked by rising interest rates. The pandemic, coupled with the Russian invasion of Ukraine, has led to supply chain disruptions and economies worldwide having to deal with decades-high inflation.
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