Hays has unveiled deep workforce cuts as it intensifies cost-saving efforts amid a prolonged downturn in the global jobs market.
The recruiter said it reduced its consultancy headcount by 14% in the year to the end of March, alongside a 7% reduction in non-consultancy staff, as part of a broader restructuring aimed at saving £45 million annually by 2028–29.
Around £30 million of those savings are being delivered in the current financial year, including £15 million in the third quarter alone. The firm said its consultancy workforce is now “appropriate for current market conditions” and is expected to remain broadly stable in the near term.
The cuts come against a backdrop of weakening demand across key markets. In the UK and Ireland, consultant numbers were reduced by 16% as net fees fell 10%, while in Germany—its largest market—fees dropped by 11%. Overall group net fees declined by 8%.
Despite the downturn, investors reacted positively, with Hays shares rising 7% after the update, as the decline in fees was less severe than the 10% fall recorded in the previous quarter.
The company said it would continue to “structurally reduce” its cost base to better position itself for a recovery, warning that labour market conditions are likely to remain “challenging” in the near term.
Hays maintained its operating profit guidance at £45.2 million, while reporting underlying earnings of £45.6 million for the 2024–25 financial year—down 57% from the previous year, underscoring the scale of the slowdown in hiring activity.
Mark Dearnley, interim chief executive of Hays, said: “We remain mindful of heightened global macro-economic uncertainty and the impact this could have on the wider economy.
“However, we are executing well and taking decisive actions to improve our portfolio and restore our financial performance.
“We continue to make strong progress with our structural cost and productivity initiatives and expect the full financial benefits to build over time.”
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