Warning Signs from the Boardroom: CEOs Expect Job Cuts Ahead

What Happened

A new survey of corporate leaders has revealed that more CEOs now expect to reduce staff than expand it in the coming year. According to the results, 34% of CEOs anticipate shrinking their workforce over the next 12 months, while only 27% expect to grow their teams. Another 39% said they plan to keep staffing levels about the same. This marks the first time since 2020 that expectations for workforce reduction have outweighed hiring plans.

The survey, conducted by the Business Roundtable, provides a snapshot of how executives view the direction of the U.S. economy. In addition to workforce plans, the survey found a decline in CEO confidence in both sales and capital spending.

Expectations for sales growth dropped 9 points from the previous quarter. Expectations for capital investment fell 6 points. Together, these indicators suggest that companies are preparing for slower growth and taking a more cautious approach to spending and hiring.

Why It Matters

This change in CEO sentiment matters because these companies drive much of the U.S. economy. When major corporations plan to reduce hiring and investment, the effects ripple through workers, suppliers, and communities nationwide.

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The 34% of executives who plan to cut jobs reflect a growing caution that has been building over the past year. High borrowing costs, persistent inflation, and uncertainty about consumer demand are all contributing to a more conservative stance on growth. At the same time, only 27% of CEOs are planning for expansion. This is a clear sign that optimism has cooled compared with prior surveys.

The last time the scale tipped toward reductions rather than growth was in 2020, when the COVID pandemic created widespread disruption. While the current environment is different, the numbers show that executives see risks on the horizon and are adjusting their strategies accordingly.

This is a warning sign for policymakers, as the Federal Reserve has been trying to manage inflation without causing a significant slowdown. The shift in CEO expectations could indicate that businesses are already bracing for weaker conditions. If companies reduce hiring and investment simultaneously, it is highly probable that it will hinder more robust economic growth.

How It Affects Readers

For employees, this data shows the possibility of more difficult labor conditions in the coming year. As a large chunk of executives are considering workforce reductions, it could mean layoffs or slower hiring, depending on the industry. Workers in sectors sensitive to consumer demand, such as retail, construction, or manufacturing, may feel the impact sooner than others.

For business owners and managers, the decline in CEO confidence is a reminder to plan carefully. If larger corporations are slowing investment and preparing for leaner times, smaller companies may also need to be more cautious about costs and expansion plans. On the other hand, businesses that maintain strong balance sheets and focus on efficiency may find opportunities in a cooling market.

The data also speaks to the broader health of the economy. Workforce reductions and weaker capital spending can slow growth, which in turn affects everything from wages to consumer confidence. As we close out the third quarter of 2025, economic performance will likely remain a top issue. Any changes in business sentiment will play into national debates over policy, regulation, and leadership.

While not a recession prediction, these survey results show that major companies are bracing for tougher conditions. The cooling confidence among business leaders could shape labor markets and economic growth over the coming year.

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The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

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