Where Companies Say They Will Cut Budgets First in a Softer Economy

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Companies are cutting real estate footprints, and the budgets that go with them, according to a Gartner CFO survey.

Narayani said roughly a third of the cost of the company's previous real estate strategy has been put into the company's new off-site strategy, with other portions of that being used to pay for the four office spaces and other co-working spaces. Real estate budget was also put towards travel, talent development, diversity and inclusion efforts,"and towards anything else that makes the employee experience better," he said.

Forty percent of CFOs say they will increase IT budgets in the next 12 months, a finding consistent with previous Gartner survey work and with the overall theme in the C-suite thatTechnology is also seen as a deflationary force, making it even more important for investment at a time of high prices. The Gartner survey finds one-quarter of CFOs saying automation will help them fight inflation.

How CFOs spend in an inflationary world is a much bigger topic than just where real estate budget is redirected or how companies selectively cut as the economy slows down.

 

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