London, United Kingdom — KPMG has released its 2025 Global CEO Outlook, revealing a landscape that is rapidly evolving due to technological advancements and shifting workforce expectations. The report highlights the necessity for leaders to adapt to these changes to thrive.

The survey involved over 1,300 CEOs across 11 countries, including the United States, Germany, and Japan. It indicates that 70% of CEOs anticipate significant changes to their workforce structure within the next three years. This reflects a growing recognition among leaders that flexibility and adaptability will be critical for future success.

According to the report, 67% of CEOs believe that digital transformation is the top priority for their organizations. The urgency is clear: businesses are not just adapting to change; they are actively seeking to drive it. Investments in technology, particularly in artificial intelligence and data analytics, are set to increase dramatically. KPMG found that 80% of CEOs plan to increase their budgets for technology initiatives in 2025, a clear indication of the strategic shift towards digital-first operations.

Moreover, the report reveals that workforce well-being is becoming a fundamental pillar of corporate strategy. Over 60% of CEOs cited mental health and work-life balance as essential components in retaining talent. This shift emphasizes a more humane approach to leadership, where employee satisfaction is viewed as directly linked to organizational performance.

Interestingly, the gig economy is expected to grow, with 58% of CEOs indicating plans to integrate gig workers into their business models.

The Rise of Remote Work and Gig Economy

The report also delves into the continued rise of remote work and the gig economy. With 65% of CEOs believing that hybrid work models will remain prevalent, organizations must rethink their policies to accommodate a more flexible workforce. This shift offers opportunities for companies to tap into a global talent pool, but it also presents challenges in maintaining company culture and cohesion.

Interestingly, the gig economy is expected to grow, with 58% of CEOs indicating plans to integrate gig workers into their business models. This integration will not only provide flexibility but also drive innovation as diverse skills come into play. However, it raises important questions about how companies will manage and support these workers.

Leadership in a Changing Landscape

Leadership styles are also evolving in response to these trends. The KPMG report shows that 72% of CEOs recognize the need to cultivate emotional intelligence within their leadership teams. As the workplace becomes more complex, leaders must be equipped to navigate the emotional landscapes of their employees. This is not merely a trend; it is a necessity for fostering an inclusive and engaged workforce.

CEOs are increasingly focused on building diverse teams, with 77% stating that diversity and inclusion are crucial to their growth strategies. This commitment to diversity is not just about meeting quotas; it is about leveraging different perspectives to drive innovation and improve decision-making. Companies that embrace diversity will likely outperform their competitors in the coming years.

Environmental, Social, and Governance (ESG) Factors

Another critical insight from the report is the growing emphasis on Environmental, Social, and Governance (ESG) factors. Over 68% of CEOs reported that ESG initiatives are integral to their long-term strategies. This focus reflects a broader societal expectation that businesses must take an active role in addressing global challenges, such as climate change and social inequality.

To meet these expectations, companies are increasingly looking to integrate sustainability into their core operations. This shift not only helps in building brand reputation but also attracts investment from stakeholders who prioritize ethical practices.

CEOs are increasingly focused on building diverse teams, with 77% stating that diversity and inclusion are crucial to their growth strategies.

Preparing for the Future

The KPMG 2025 Global CEO Outlook underscores a transformative period for businesses worldwide. As organizations navigate these changes, leaders must prioritize adaptability, employee well-being, and a commitment to diversity and sustainability.

The future of work will demand innovative approaches to leadership and a willingness to embrace new operational models. Companies that fail to adapt to these emerging trends risk being left behind. In contrast, those that proactively embrace change will be well-positioned to thrive in a competitive landscape.

The next few years will be critical for organizations as they implement strategies that reflect these insights. As the workforce continues to evolve, so too must the leaders who guide them.