46 pc CEOs are considering downsizing workforce: Survey

Forty-six per cent of CEOs across the globe are considering downsizing their workforce over the next six months, a survey by KPMG, a global network of professional firms providing audit, tax and advisory services, revealed.

The survey, titled ‘KPMG 2022 CEO Outlook’, spoke to more than 1,300 CEOs from across 11 key markets, including India, Canada, China, France, Australia, the UK, and the US.

The report said there are indications that the 'great resignation'—a phenomenon witnessed in the past 18 months after the job market opened globally after the pandemic, of a large number of resignations for various reasons including career progression, dissatisfaction with the salary or functioning of the company—is showing signs of abating.

“With continued economic turmoil, there are signs the Great Resignation could be cooling down, with 39 percent of CEOs having already implemented a hiring freeze, and 46 percent considering downsizing their workforce over the next 6 months," the survey said.

The CEOs are more optimistic in the long-term, as only nine per cent are expecting a further reduction of headcount.

The CEOs included in the survey were from 11 key sectors, including automotive, banking, infrastructure, manufacturing, technology, energy, and telecommunications.

Eight out of 10 of the CEOs expect a recession in the next 12 months, but more than half of them believe that this will be mild and short.

“Fourteen percent of senior executives identify a recession among the most pressing concerns today — up slightly from early 2022 (9 per cent), while pandemic fatigue tops the list (15 per cent)," the report said.