Deloitte study | Less hiring, more cost-cutting as CFOs brace for 2025 challenge

Deloitte’s latest survey of UK Chief Financial Officers (CFOs) paints a sobering picture, with business optimism falling to a two-year low in the fourth quarter. A net 26% of CFOs report feeling more pessimistic about their company’s prospects compared to three months ago. 

This marks the first dip into negative sentiment territory since mid-2023, though confidence remains well above the levels seen during the turbulence of 2020 and 2022.

Cost-cutting tops the agenda

As businesses prepare for the upcoming rise in National Insurance Contributions (NICs), cost-cutting has emerged as the dominant strategy among finance leaders. Raising productivity and passing costs on to customers were also highlighted as important approaches, but reducing expenditure took centre stage.

Cost control has been the top priority for 52% of CFOs for an unprecedented 11 consecutive quarters. This focus reflects a wider tightening across the corporate sector, with a net 58% of respondents expecting cuts to discretionary spending and a net -64% anticipating reduced hiring—a four-year low.