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.

In a Gartner March 17, 2025, webinar poll of more than 600 corporate executives and business leaders, 58% of respondents anticipate supply chain disruptions in 2Q25 due to tariffs. Additionally, 42% are bracing for reduced demand, while 41% expect accelerated inflation to impact their operations.

"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.

In the face of these economic pressures and a rapidly evolving technology landscape, operational flexibility is integral to maintaining resilience and driving growth. Drawing from the practices of efficient growth companies, Gartner emphasized three tactics and mindsets that finance leaders can implement to enhance operational flexibility:

1)    Cut to reduce spend: Efficient growth companies emphasize the importance of adaptable resource allocation to swiftly respond to market changes and technological advancements, reallocating resources in real-time to high return areas, such as emerging technologies and market opportunities. This flexible budgeting ensures investment growth and innovation-driven opportunities.

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.

Additional information is available in the complimentary Gartner webinar on demand 5 Actions to Seize the Shift: Business Implications of U.S. Federal Policy Changes. Gartner experts provide an analysis of key disruptions and their impact on the financial landscape and operating environment.