For large firms, hiring intentions are on hold for 41% while 49% are considering reducing their headcount over the next six months. For SMBs, 30% have frozen hiring with 41% considering downsizing their employee base in the coming months.
Cutting back on digital transformation is also likely, with 37% of CEOs and 25% of SMBs having paused their business transformation strategies to mitigate short-term recession risks and another third of both groups to take similar action in the next six months.
“While it may be tempting for some leaders to ‘slash and burn’ to manage through a recession, they ultimately do so at their own peril,” says Stephanie Terrill, partner and business unit leader, management consulting at KPMG in Canada. “They are counting on both their customers and talent to be waiting for them on the other side of a recession that may never happen.”
Bullish outlook
Despite the downturn expectations, 79% of CEOs are confident that they will ride out the recession.
Almost all (96%) are also very confident or confident in growth for the business over the next three years. Nine in ten SMB also said this.
