America’s business leaders are heading into 2026 with renewed confidence. International Workplace Group’s new State of the U.S. C-Suite report shows widespread optimism: 95% of CEOs feel positive about the year ahead, and 84% anticipate improving economic conditions after a period marked by uncertainty.
This upbeat outlook is anchored in discipline. Every U.S. CEO surveyed — a full 100% — identified cost control as essential to success in 2026. CFOs are already acting on that priority, cutting budgets by roughly 10% on average.
AI and Flex Work Become Core Cost-Efficiency Levers
As leaders look for places to save, two strategies dominate: automation and flexible work. AI is projected to reduce operational expenses by 20–40%, while hybrid and flexible workspace models can trim real-estate costs by 55%, giving companies room to reinvest in growth-focused initiatives.
Productivity expectations are equally high. Past research indicates that AI tools can return nearly a full day of work each week to employees — 55 minutes a day on average — helping organizations stretch resources while maintaining performance.
Reflecting that impact, 82% of executives plan to prioritize investment in AI and automation next year.
Flexible Work Becomes the Default Operating Model
Hybrid work is no longer viewed as a temporary accommodation but as a strategic reallocation of where value is produced. Companies are increasingly distributing their workforce across local coworking centers, central offices, and home environments.
This is widespread: 83% of CEOs already allow teams to operate from multiple locations. Motivations include shorter travel times (43%), broader talent access (37%), employee satisfaction (37%), productivity (37%), and the ability to choose lower-cost office markets (37%).
In 2026, this approach will mould leasing behavior. More than half of CEOs expect to seek shorter-term real estate commitments (56%) or turn to flex-workspace memberships (54%).
Network Expansion Reflects Market Demand
IWG’s growth trajectory mirrors the corporate movement toward decentralized work. Between September 2024 and September 2025, the company added 660 new U.S. locations, with 83% debuting outside major urban centers.
Globally, its network now spans more than one million rooms across 121 countries, and recent expansion rates have exceeded those of the company’s early years.
What C-Suite Leaders Are Prioritizing for 2026
Across executive titles, workforce and technology investments dominate strategic thinking. More than four in five leaders say the following areas will be prioritized in 2026:
- Cost savings (83%)
- Workforce training, reskilling and upskilling (83%)
- Hiring top talent (83%)
- Retaining top talent (83%)
- Organizational culture improvements (83%)
- AI and automation investment (82%)
- Productivity enhancements (82%)
- Infrastructure improvements (81%)
- Real-estate investment (81%)
- Sustainability initiatives (81%)
Differences emerge by role:
- CMOs are the most enthusiastic about AI (88%).
- CFOs show the lowest support for workforce training (78%).
- CPOs, CHROs and technology chiefs place the highest emphasis on productivity (85%).
- CEOs are the least likely among all groups to prioritize productivity (79%).
What Executives Say Will Drive Business Success
Long-term workforce strategies dominate the list of what leaders believe will matter most next year. Top objectives include:
- Long-term talent retention (42%)
- Recruiting strong candidates (41%)
- Adoption and understanding of new technology (40%)
- Workforce well-being (39%)
- Profitability (39%)
Larger companies place even greater weight on productivity; 42% of leaders at firms with 500+ employees cite it as their top success factor.
The Impact of Hybrid and Flexible Work
Executives report meaningful business gains from adopting flexible work policies. Key benefits include:
- Increased productivity (49%)
- Larger candidate pools (47%)
- Cost savings (45%)
- Revenue growth (45%)
- Lower carbon footprints (38%)
Employees also show measurable improvement under flexible models:
- Higher retention (51%)
- Greater happiness (49%)
- Better health outcomes (48%)
- Increased satisfaction (47%)
More than half of CEOs say hybrid work has boosted employee satisfaction.
A notable trend is the rise of “quiet” or informal flexibility. 77% of executives plan to adopt a more flexible stance than their organizations’ official policies in 2026.
