Top U.S. CEOs Express Economic Pessimism, Anticipate Workforce Reductions

A growing number of U.S. CEOs have expressed significant economic pessimism, with many anticipating workforce reductions in response to various challenges. The Business Roundtable’s CEO Economic Outlook Index has declined sharply, dropping 15 points to 69 in the second quarter of 2025, marking the lowest level since 2020. This downturn reflects heightened concerns among executives regarding hiring, investment, and sales growth. Notably, over 40% of CEOs plan to reduce their workforce in the next six months, up from about 30% in the first quarter.

The primary factors contributing to this pessimism include unpredictable trade policies and a lack of clear economic strategies. JPMorgan CEO Jamie Dimon highlighted the importance of maintaining strategic investments, including workforce-related programs, even during periods of economic uncertainty. He cautioned against expecting consistently smooth economic conditions, stating, “There will be economic problems.”

Additionally, BlackRock CEO Larry Fink noted that most CEOs believe the U.S. economy is currently in a recession, emphasizing growing concerns about economic weakness. He attributed this sentiment to factors such as President Trump’s trade policies, which have introduced further uncertainty into the economic landscape.

In response to these challenges, many CEOs are considering cost-cutting measures, including workforce reductions. A survey by KPMG revealed that 91% of CEOs believe a recession is imminent, with approximately half contemplating layoffs as a strategy to navigate the anticipated downturn.

Despite these concerns, some CEOs remain optimistic about their companies’ ability to weather the storm. However, the prevailing sentiment among top U.S. executives indicates a cautious approach, with a focus on strategic investments and potential workforce adjustments to adapt to the evolving economic environment.