More than 90% of CEOs believe a recession will occur within the next 12 months, according to a recent KPMG survey. The vast majority feel that the recession will be difficult, with only around 34% believing the upcoming rescission will be brief and not too painful.
More than 90% of CEOs believe a recession will occur within the next 12 months, according to a recent KPMG survey. The vast majority feel that the recession will be difficult, with only around 34% believing the upcoming rescission will be brief and not too painful.
The executives recognize that there are a host of uncertainties to contend with. The challenges range from the possibility of the United States getting embroiled in a war with Russia, as heated rhetoric between Vladimir Putin and President Joe Biden has risen lately, to the effect runaway inflation has on American families. As the Federal Reserve Bank fights inflation, the results are plunging stock prices with losses of around $10 trillion. Higher interest rates are making home ownership out of reach for many people, particularly young families just starting their lives together.
If the top executives are worried, you should be too. When the C-suite is concerned about the future, they’ll take proactive actions to cut costs, reigning in expenditures to ride out the storm.
The knee-jerk reaction is for businesses to reduce headcount. Companies in a wide array of sectors have already announced mass downsizings, hiring freezes and job rescissions.
The tech sector reflects the new reality. Instead of unfettered growth, tech giants and startups are cutting personnel. Apple pink slipped 100 recruiter contract roles.
