Up to a third of firms here may look to reduce staff numbers, a survey of business leaders by professional service firm Aon suggests.
Half of businesses also said they would at least look to reduce costs in the current environment.
An economic slowdown was identified as the top risk facing firms, followed by inflation and talent acquisition and retention.
Aon's Business Decision Maker Pulse surveyed 228 senior business leaders from companies employing more than 250 employees across Ireland between October and November of this year.
Today's survey also shows that 52% of leaders believe that rising energy prices will hinder their company's ability to grow within the next six months.
The growing unease over high inflation is also have a negative impact on business sentiment.
Aon said that 53% of survey participants expect low economic growth while 41% expect the Irish economy to enter recession in the next six months.
But Irish business leaders appear to be more optimistic than their global counterparts, with 79% of leaders globally expecting a recession this year, according to a separate survey carried out by Aon.
Rachael Ingle, CEO of Aon Ireland, said the Decision Maker Pulse survey shows that inflation and rising energy costs are having a tangible impact on Irish businesses and their plans for the coming months.
"Many leaders are now actively considering ways in which they can manage costs while continuing to build a workforce that attracts the very best talent who can help foster innovation. But with the increasing likelihood of a global recession, it is clear that economic risk is becoming the driving factor in how Irish leaders make business decisions over the coming months," the CEO added.
She said it is vital that leaders focus on protecting their organisation's resilience and find growth opportunities in the face of heightened volatility.
"Businesses will need to be agile in the face of current uncertainty and look at ways in which they can enhance their competitiveness," she added.
