As a potential recession looms, leaders are grappling with cost-cutting measures that sometimes include workforce reductions.
As many experts continue to predict a coming recession, much of the focus has been on layoffs in the technology sector.
Another industry is also feeling pressure in terms of the ability to pay all of its employees.
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Coupa CFO Tony Tiscornia said education industry CFOs cited workforce reductions as an expected action in the next six to 12 months to boost growth in the event of a recession, according to fox business.
E-learning company Udemy announced on February 14 that it would be cutting jobs.
“In order to position ourselves for long-term sustainable growth, we have made the difficult but necessary decision to reduce our global workforce by 10%,” Udemy CEO Gregg Coccari wrote in a statement. letter to employees.
Seattle Public Schools, facing a $131 million budget shortfall, has notified some employees that their jobs may be cut.
“We are in a difficult stage right now,” Superintendent Brent Jones said on February 28. “It’s moving from theory to actual action being taken. This is really affecting employees.”
a coupa survey than 600 chief financial officers (CFOs) found they are experiencing economic uncertainty, supply chain disruption, and pressure to remain profitable as costs rise.
Of the CFOs surveyed in the report, 86% said layoffs are a last resort, according to the report.
“But in many cases, CFOs don’t have the level of data and visibility needed to really consider alternatives to layoffs when possible,” Tiscornia said. fox business.
The report said that how companies manage their financial health during this difficult period is of paramount importance.
“With concerns ranging from hitting upcoming sales forecasts to a lack of visibility into company spending, one thing is clear,” said the report said. “CFOs need to get their finances in order if they are to get through these uncertain times.”
“With a potential recession on the way, finance leaders must act now to optimize the financial health of their organization and equip their business to respond more quickly and strategically to disruption,” he continued. “There has never been a better time to build towards a more secure future. The next steps you take are crucial and will build resilient businesses from those that fail.”
