The firm is one of a raft of recruitment companies to have been knocked by the weak jobs market, after rival PageGroup also reduced its profit guidance earlier this week
Recruitment giant Robert Walters has slashed more jobs as the hiring market continues to face challenges.
The firm has dashed hopes of a profit for the year, joining other recruitment agencies like PageGroup in feeling the pinch from a sluggish job market. Toby Fowlston, the chief executive of Robert Walters, commented: “As seen throughout the year, 2024 closed with conditions in global hiring markets remaining challenging – marked by muted client and candidate confidence.”
On Tuesday, the company announced a 5% reduction in its workforce since September’s end, equating to 172 job cuts. Over the past year, nearly 700 positions have been eliminated.
The group also reported a 17% drop in net fee income to £75.5m for the quarter ending December 31, with fees falling short of expectations as trading conditions stayed tough towards the year’s close. In the UK, the firm’s income fell by 15% to £11.7m for the same period.
Consequently, Mr Fowlston stated that the company is bracing for “a broadly breakeven position at the profit before tax level” for the full year, a contrast to earlier profit forecasts of about £2m. Despite the challenging environment, Mr Fowlston affirmed: “Notwithstanding the market backdrop, we remain focused on our initiatives to strengthen the business.”
“Consistent with the disciplined entrepreneurialism strategy set out at last year’s capital markets event, we are rigorously focused on improving fee earner productivity across our markets, driving efficiencies in our front and back-office teams, optimising our office network and leveraging more co-ordinated procurement.”