The ongoing slowdown in corporate recruitment continued to drub Hays PLC (LSE:HAS) in the first quarter of its financial year.
According to a trading update posted on Friday, the FTSE 250-listed company saw a 15% year-on-year drop in net fees, with losses felt across all key regions including Germany, the UK, Ireland, Australia and New Zealand.
Consistent with employers’ cautious hiring trends, temporary placements fared comparatively better, posting an 11% decrease, while permanent placements experienced a sharper 21% drop.
"Net fees in the quarter were down as expected reflecting the tough market conditions, particularly the longer time to hire and low levels of confidence which we expect to continue," said chief executive Dirk Hahn.
He added: “Given this backdrop, we remain resolutely focused on operational rigour through business line prioritisation, resource allocation, and efficiency initiatives and, due to our actions, group consultant productivity increased by 5% (in the first quarter).”
Hays reduced its headcount by 2% during the quarter, with an 18% reduction year-on-year.
Shares are down 21% year to date.