Hays eyes cuts in workforce as employment activity dips amid election

(Alliance News) - Hays PLC on Thursday reported a decline in net fees, saying the UK general election hurt the recruitment market, as it aims to reduce its numbers of employees.

The London-based recruitment company said net fees declined 17% in the fourth financial quarter ended June 30, with the Australia & New Zealand region suffering the largest contraction of 24%. Net fees were down 18% in Germany and 17% in the UK & Ireland.

Hays noted that in the UK, recruitment activity was reduced by the general election that took place last Thursday.

The company highlighted it is focused on reducing its overall numbers of employees, while it aims "to increase our efficiency and rigour".

It emphasised that its consultant headcount in Germany declined by 9% year-on-year, while it was 16% lower in the UK & Ireland, 32% lower in Australia & New Zealand, and 20% lower in the rest of the world.

Chief Executive Officer Dirk Hahn said: "Given ongoing global uncertainties, in the near-term we expect our key markets will remain challenging. Looking ahead, we are focused on building a more resilient business, targeting the many long-term growth opportunities we see, and underpinned by our clear strategy and enhanced operational rigour. I know we can deliver substantial profit growth once our end markets recover, driven by our financial strength and strong teams of talented colleagues worldwide."

Hays shares rose 1.1% to 90.70 pence each on Thursday morning in London.

By Tom Budszus, Alliance News slot editor

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