Hays Cuts Consultancy Staff by 14% Amid Tough Recruitment Market
Global recruitment firm Hays has announced a significant reduction in its workforce, cutting consultancy staff by 14% year-on-year in the three months leading up to March. This move is part of a broader strategy to save £45 million annually by the 2028-29 fiscal year, with approximately £30 million in savings targeted for the year ending in June. The decision comes as the company faces challenging conditions in the global jobs market, particularly in key regions like the UK, Ireland, and Germany, where net fees have declined by 10% and 11% respectively. Despite an overall 8% drop in group fees and a 57% decrease in underlying earnings for 2024-25, Hays shares rose 7% as the fee decline was less severe than in the previous quarter. Interim CEO Mark Dearnley emphasized the company's decisive actions to structurally reduce costs and improve its portfolio to withstand macro-economic uncertainty. The firm expects its consultancy workforce to remain stable in the fourth quarter while continuing efforts to position itself strongly for eventual market recovery.
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Hays Cuts Consultancy Staff by 14% Amid Tough Recruitment Market
Global recruitment firm Hays has announced a significant reduction in its workforce, cutting consultancy staff by 14% year-on-year in the three months leading up to March. This move is part of a broader strategy to save £45 million annually by the 2028-29 fiscal year, with approximately £30 million in savings targeted for the year ending in June. The decision comes as the company faces challenging conditions in the global jobs market, particularly in key regions like the UK, Ireland, and Germany, where net fees have declined by 10% and 11% respectively. Despite an overall 8% drop in group fees and a 57% decrease in underlying earnings for 2024-25, Hays shares rose 7% as the fee decline was less severe than in the previous quarter. Interim CEO Mark Dearnley emphasized the company's decisive actions to structurally reduce costs and improve its portfolio to withstand macro-economic uncertainty. The firm expects its consultancy workforce to remain stable in the fourth quarter while continuing efforts to position itself strongly for eventual market recovery.
The Standard