Hays, one of Europe’s largest recruitment agencies, has reported a sharp fall in profits as global economic uncertainty weighed on hiring activity.
For the year ending June, net fees were £972.4 million, down 11 per cent compared with the previous year on a like-for-like basis. Permanent placement fees fell 17 per cent, with total placements declining by 20 per cent. Temporary and contract hiring was more resilient, falling 7 per cent.
Pre-tax profits fell 90 per cent to £1.5 million, while profits before exceptional items dropped two-thirds to £32.2 million. Germany, Hays’ largest market, contributed to the decline, with permanent hiring volumes down 25 per cent amid subdued activity in automotive and industrial sectors.
The company has responded with cost-saving measures, including £35 million in annual reductions and plans for an additional £45 million by 2029. Over the past year, 29 offices were closed or merged, and recruitment consultant numbers were cut by 14 per cent, reducing headcount by roughly 1,000 globally, including 350 in the UK and Ireland.
Hays reported that activity during July and August remained subdued, and it is monitoring September, a key month for trading. The firm continues to focus on in-demand sectors and temporary recruitment, positioning itself to recover fees and profits when markets improve.
