Gartner Survey Shows Half of C-Suite Executives Considering Cuts in Their Function in the Second Quarter of 2025
Half of C-suite executives are considering cuts to their function in the second quarter of 2025, in anticipation of continued disruption of supply chains, decreased consumer demand and inflation, according to a poll by Gartner, Inc.
“Organizations are navigating unprecedented levels of uncertainty, and our survey reveals that many are taking proactive steps to adapt,” said Alexander Bant, Practice Vice President, Chief of Research for the Gartner Finance practice. “CFOs and their teams must ensure that steps taken to help guide cost cuts are done in a measured way that doesn’t impact resilience and long-term performance.”
In response to these scenarios, C-level executives are considering a range of strategic actions (see Figure 1). Nearly half (of respondents plan to reduce budgets and spending to safeguard their financial health amid economic uncertainty. Flexibility and adaptability are key themes, with 38% focusing on dynamic changes to their products, go-to-market strategies, or geographic sales mix.
Figure 1: As a result of the economic impact and uncertainty of new U.S. Federal Policy Changes, which of the following response actions are you planning to take in Q2? (select all that apply)
![[Image Alt Text for SEO]](png/2025-05-06-response-actions-graphic.png)
Source: Gartner (May 2025)
Operational Flexibility
2) Optimize performance: Operational flexibility is reinforced by finance teams that use agile decision-making processes that can quickly adapt to external pressures. Fostering a culture of experimentation and rapid decision-making empowers innovation, while continuous learning and development initiatives ensures resilience and forward-thinking for new challenges and opportunities.
3) Invest in future sources of value: Adopt a strategic approach to cost management that focuses on differentiating, enabling, and commoditizing costs. By identifying and accelerating differentiating costs that enhance competitive advantages, finance teams can ensure resources are directed toward capabilities that fuel revenue and profit growth. Minimize commoditizing costs through automation and standardization to enhance operational flexibility, and support critical growth areas in a changing economic environment.
