A June 2022 survey of 128 CFOs and CEOs showed that investments in mergers and acquisitions (M&A) and sustainability will be the first areas to face cuts in organizations feeling their margins triple squeezed by rising inflation, talent shortages and supply constraints, according to Gartner, Inc.
“Cuts to M&A are an obvious choice after record activity in 2021 and with rising interest rates significantly increasing the cost of financing such deals,” said Randeep Rathindran, vice president, research in the Gartner Finance practice. “It’s more surprising to see sustainability so close to the chopping block because CEOs rated it as a top strategic priority for the first time in 2022, and ESG disclosures are increasingly becoming enshrined in legislation.”
The survey identified the most selected areas that CEOs and CFOs will likely cut first in the face of continued economic disruption (see Figure 1).