The recruitment giant said it had been forced to close 15 of its UK and Irish offices during the calendar year, and slashed the number of consultants by more than 1,100
Recruitment giant Hays says profits more than halved in the latter part of last year, amid hiring slowdowns across firms in the UK and Europe.
The corporation, headquartered in London, pointed to “considerable headwinds from economic conditions” for the operating profit dip to £26m—a 56% drop compared to the same stint in 2023. Meanwhile, Hays closed 15 UK and Irish offices over the year, while also cutting its consultancy team by 1,100, around 300 of whom were based in the UK and Ireland.
The headcount has fallen by roughly 2,700 in the past couple of years, leaving them with about 6,800 staff when 2024 drew to a close. As one of Europe’s biggest firms in recruitment, Hays’ ups and downs reflect the broader office-based job market in the UK, Germany, and France, particularly for accountancy and technology roles.
Hays is among the biggest recruitment agencies in Europe, and its fortunes are closely tied to the market for office-based jobs in the UK, Germany, France and others. Hays said: “Economic and political uncertainty weighed on client and candidate confidence driving lower placement volumes and a material lengthening of our ‘time-to-hire’.”
In a stark turnaround, the firm noted a 13% tumble in fees group-wide for the six months leading up to December 31, relative to the previous year, and in the UK and Ireland, an even sharper 17% fee fall. Beyond these shores, Hays also stakes claims to offices in places like Australia, Japan, and the US.
Chief executive Dirk Hahn has reported that the firm is facing “considerable headwinds from economic conditions” during what he describes as a “challenging period”. He said: “Our key markets are being driven by powerful, supportive megatrends and remain characterised by significant talent shortages, which we help solve for our clients.
“When client and candidate confidence improves and the cycle recovers, I am confident we will deliver a healthy drop-through of net fees to operating profit.”
In an effort to counteract these difficulties, Hays has undertaken cost reduction measures amounting to around £25m annually through “operational restructuring and back office efficiency programmes”.
This announcement follows criticism from several major UK companies regarding the Government’s recent decisions to increase taxation on businesses. Labour’s October Budget saw a hike in employer national insurance contributions, to generate additional tax revenue for public service improvements, including the NHS.
However, this move has faced backlash from corporations for raising employment costs. Finance analyst at eToro, Adam Vettese, reflected on how “low confidence and political uncertainty will have undoubtedly contributed” to the challenges faced by Hays, noting a drop in profit.
“Recruitment firms have had to batten down the hatches and being a market leader, Hays has been able to implement a wave of cost-cutting measures in order to weather the storm,” he said, while also acknowledging that “Smaller firms in the space have not been so fortunate.”
