A third of CEOs plan to axe jobs over the next year—and most now say they’ll pass on new tariff costs to their customers

Economy·EmploymentA third of CEOs plan to axe jobs over the next year—and most now say they’ll pass on new tariff costs to their customersBy Eleanor PringleBy Eleanor PringleReporterEleanor PringleReporterEleanor Pringle is an award-winning reporter at Fortune covering news, the economy, and personal finance

Eleanor previously worked as a correspondent and news editor in regional news in the U.K

She her journalism training with the Press Association after earning a degree from the University of East Anglia.SEE FULL BIO BLS's surprise jobs revision suggests it's increasingly difficult to find a role.Jackyenjoyphotography - Getty ImagesCEO confidence has rebounded in Q3, with recession fears easing sharply—but hiring plans remain muted as firms brace for Trump’s tariffs and focus on cost cuts

The Conference Board released their U.S

CEO Confidence report for the third quarter Thursday, finding that CEOs have stepped back from the peak level of uncertainty they experienced in Q2

This geniality isn’t necessarily echoed by economists

This week Moody’s chief economies, Mark Zandi, said a bombshell labor report from the Bureau of Labor Statistics—among other data—had led him to realize America is “at the precipice of recession.” While leaders on the ground may not agree, they are demonstrating why 2025 is ly to be the year of cost efficiency as bosses increasingly tighten their belts when it comes to payroll

Indeed, the of CEOs planning to expand their workforce also ticked down to 27% from 28%, and 39% of CEOs said they planned to maintain the size of their workforce, down from 44% in Q2. “The of CEOs expecting some reduction in the size of their workforce over the next 12 months rose for the fifth consecutive quarter,” said Roger W

Some of the softness in the BLS’s recent report, wrote Macquarie’s North America economists in a note to clients this week, doesn’t come from layoffs but from people unable to reenter the market

David Doyle and Chinara Azizova noted initial claims for joblessness remained low, suggesting layoffs are not spiking, but continuing claims edged higher indicating those who had been laid off are finding it more difficult to land roles

Indeed the duo added Job Openings and Labor Turnover Survey (JOLTS) data revealed the number of unemployed appears to be rising most steeply among labor force entrants and re-entrants, indicating those with a less concrete career history will find it difficult to get a foot on the ladder. “Importantly, the economic consequences that flow from a job loss (and loss of income) are far more substantial than the untapped growth that comes from a new labor force entrant failing to find work,” they noted

Managing costs Companies are facing increased cost headwinds because of the White House’s tariff regime as global supply chains have become increasingly interwoven

The vast majority of leaders—93%—said they’d be ing for cost efficiencies by deploying AI or automation to bring down overheads

And 64% said they’d be passing that price hike onto consumers, and a further 16% said they’re still considering

This is a higher portion of passthrough than indicated by previous surveys

For example, the New York Fed reported in June that 45% of services firms were intending to pass on the full extend of their tariff-related increases. “CEO confidence recovered in the third quarter after collapsing in Q2, but fell short of signaling a return to optimism,” said Stephanie Guichard, senior economist for global indicators at The Conference Board. “The imvement is a continuation of the trend seen after tariff disputes between the U.S. and China became less intense and potentially reflects gress on trade negotiations. “CEOs’ views on current economic conditions made the sharpest recovery

Their six-month expectations for the economy as a whole and in their own industries also imved

CEOs’ assessments of current conditions in their own industries—a measure not included in calculating the topline confidence measure—also recovered but remained in pessimistic territory

Explore this year's list.