Global recruitment firm Hays has reported a significant 25% decline in operating profits for the second half of 2025, as the company continues to grapple with a prolonged and challenging hiring slump across key markets. The London-listed group revealed that operating profit before exceptional items fell to £20.1 million, compared to the same period last year, highlighting the persistent difficulties in the jobs sector.
Market Challenges and Fee Declines
The company's net fees dropped by 9% overall, with similar declines observed in the UK and Ireland. This downturn was primarily driven by a sharp 14% reduction in permanent hiring fees, which Hays attributed to weakened confidence among both employers and candidates. This has resulted in below-average role placements and extended decision-making periods, further straining the recruitment process.
Regional Performance and Sectoral Impacts
Hays, one of Europe's largest recruitment agencies specializing in office-based roles, noted particularly tough conditions in Germany and France. In Germany, fees from the automotive sector plummeted by 19%, reflecting broader economic pressures. However, the firm highlighted a silver lining with temporary job recruiting showing improvement in the UK and Ireland, where it returned to profitability.
Leadership Changes and Strategic Adjustments
In a parallel development, Hays announced that its chief executive, Dirk Hahn, has stepped down with immediate effect for personal reasons after 28 years with the company. Mark Dearnley, the firm's digital and technology chief, will assume the role on an interim basis while the board initiates a search for a permanent successor.
James Hilton, Hays' chief financial officer, commented on the results, stating, "Net fees declined by 9% in the first half against a backdrop of continued macroeconomic and political uncertainty. We are targeting the most in-demand sectors, roles and geographies, building stronger client relationships and increasing exposure to temporary and contracting recruitment, which will allow us to benefit from supportive long-term industry megatrends."
Operational Efficiency Measures
To navigate the challenging environment, Hays has taken decisive action to enhance efficiency. The company reported a 22% reduction in consultants in the UK and Ireland by the end of the year compared to 2024, as part of efforts to streamline teams and boost income generation. This restructuring underscores the firm's commitment to adapting to the evolving recruitment landscape amid global hiring slowdowns.
