Hays cuts 1,150 jobs amidst global hiring slowdown
LONDON, UNITED KINGDOM — British staffing giant Hays is the latest recruitment firm to fall victim to the slowing job market, announcing this week that it has cut 1,150 jobs in the past year.
Hays eliminated 650 positions in the October to December quarter alone as it struggled with a “clear slowdown” in hiring demand.
“Overall market conditions became increasingly challenging through the quarter, including a clear slowdown in most markets in December, notably in our perm[anent roles] businesses as client and candidate decision-making slowed,” said Hays Chief Executive Officer Dirk Hahn.
The staffing cuts targeted 450 consultant roles and 150 back-office jobs worldwide. The company’s consultant headcount has now dropped 12% year-over-year.
Hays believes the reductions will generate £30 million ($38.1 million) in annual savings, with “further material savings” possible in the coming six months.
The company’s shares plunged 19% on Tuesday after it warned shareholders of lower-than-expected profits.
The news comes as the United Kingdom suffers its longest vacancy slump on record amid rising interest rates. Before Hays, manufacturing firms in the UK have also been cutting back recruitment plans due to a considerable decline in business activity, according to Make UK and professional services firm BDO.
