Global survey reveals optimism in economic growth, but more leaders expect to cut staff
According to PwC's 28th Annual Global CEO survey, nearly 60 percent of CEOs globally expect economic growth to improve over the next 12 months.
The survey reveals that 42 percent of CEOs plan to increase headcount by 5 percent or more in the next year, while 17 percent anticipate workforce reductions.
Smaller companies, particularly those earning less than US$100m annually, report the highest optimism, with 48 percent planning to expand their workforce.
Hiring intentions are strongest in the technology (61 percent), real estate (61 percent), private equity (52 percent), and pharmaceutical (51 percent) sectors.
Macroeconomic volatility (29 percent) and inflation (27 percent) remain the top risks cited globally. Geopolitical conflict leads concerns in the Middle East (41 percent) and Central and Eastern Europe (34 percent).
In Western Europe, cyber risks (27 percent) surpass inflation (24 percent) and skilled labour shortages (25 percent). Inflation is the top issue in Africa (39 percent), while North America and Asia-Pacific align with global averages.
Almost half of the CEOs (42 percent) believe their companies will not survive the next decade without significant changes. Among those citing viability concerns, 42 percent point to regulatory changes as the biggest factor.
63 percent of CEOs have already taken steps to reinvent how they create and deliver value in the past five years. Companies that have taken these steps report higher profit margins.
Despite efforts, reinvention is slow.
About half of CEOs reallocate only 10 percent or less of their financial and human resources annually, while two-thirds reallocate less than 20 percent. Over the past five years, only 7 percent of revenue came from new business ventures.
CEOs report tangible gains from GenAI, with 56 percent seeing efficiency improvements and 32 percent noting revenue growth.
However, only 34 percent of CEOs achieved the profitability gains they anticipated in 2024 (46 percent). Trust in AI remains a barrier, with only one-third expressing confidence in integrating AI into core processes.
Looking ahead, 49 percent of CEOs expect GenAI to increase profitability within 12 months. Almost half plan to integrate AI into technology platforms in the next three years, while 41 percent aim to embed it in core processes.
CEOs also report more workforce increases (17 percent) than decreases (13 percent) due to GenAI.
CEOs report significant returns from climate-related investments. Thirty-three percent saw revenue growth from these investments over the past five years, and two-thirds noted reduced or stable costs.
Regulatory complexity (24 percent) remains the top obstacle to initiating climate-focused investments, ahead of concerns over lower returns (18 percent) or lack of management support (6 percent).
PwC’s Mohamed Kande highlights the need for CEOs to rethink how they create and deliver value, citing the impact of emerging technologies, geopolitics, and the climate transition.
Carol Stubbings notes the ongoing convergence of AI, climate efforts, and digitisation as drivers of industry change, urging CEOs to act decisively to remain viable.
The survey gathered responses from 4,701 CEOs across 109 countries and territories.
