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97% of CFOs have started or planning to cut costs amid recession fears

New data reveals that an overwhelming majority of CFOs are cost-cutting amid rising inflation and recession concerns.

Senior financial executives are expecting the economy to enter into recession in the next 12 months and have begun cutting costs in preparation, according to new research1 from IWG, the world’s largest flexible workspace operator.

The study, conducted among 250 CFOs, found that 91% believe an economic crisis is inevitable, with more than a third (36%) of these predicting a recession this year. As a result, nearly all (97%) have started implementing, or planning to implement, cost cutting measures.

Facility spend is a key target for businesses, with two thirds (65%) of CFOs targeting a reduction of more than 10% per year.

Hybrid working is viewed as a keyway of achieving saving targets, with 82% of CFOs saying it’s a more affordable business model as demand for office space remains high.

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On a similar note, a recent US survey by workplace software provider Robin, found that 83% of executives said they expect hybrid work to be a cost saver, while 60% said they plan to reduce office space by 50% or more.

Personnel cuts are also being relied on to reduce staffing costs in light of economic pressures, with more than two fifths (44%) of CFOs introducing forced redundancies and others looking at reviewing current staff salary bands (28%) and reducing the number of promotions (27%). CFOs are also limiting the onboarding of new staff members, with more than a third (36%) reducing new hires and a similar number delaying new hires (33%).

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