UK recruiters cut costs as hiring slows across Europe

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UK recruiters cut costs as hiring slows

Highlights

Robert Walters reports a 4% drop in second-quarter net fees and experiences a sharp share price decline on Tuesday after a previous rally.
Quarterly net fees in France fall between 12% and 17% for Hays, PageGroup, and Robert Walters as hiring demand weakens in Europe.
Recruiters shift to cost cuts and specialist markets as employers prefer temporary roles, with Hays’ outlook upgrade supporting sector stocks since Friday despite mixed regional performance.

Recruiters adjust operations amid weaker demand

As reported by Reuters, Hays, PageGroup and Robert Walters are responding to a prolonged hiring slowdown by cutting costs, refining market focus and expanding in specialist areas to protect profitability. Recent updates from the three recruiters show improving temporary hiring in the Americas and parts of Asia, but continued weakness in Europe.

Quarterly net fees decline across the sector, even as companies maintain confidence in their full-year outlooks on expectations that growth in selected markets and tighter cost control will support performance. Robert Walters says second-quarter net fees fall 4%, and its shares drop sharply on Tuesday after a strong rally a day earlier.

Executives say companies are increasingly favouring temporary and contract roles over permanent hiring as they manage uncertainty linked to tariffs, the Iran war and broader macroeconomic pressures. Recruiters also say AI-driven efficiencies are affecting hiring decisions as employers reassess roles and delay longer-term commitments.

Europe remains weak while other regions show resilience

France, Germany and Britain remain soft markets for all three recruiters, underlining the sector's exposure to slower corporate decision-making in Europe. In France, quarterly net fees fall between 12% and 17% for the companies in the period ended June 30.

By contrast, Japan and the Americas are more resilient, while China performs well for PageGroup and Hays. Investors react unevenly to the latest trading updates, with Robert Walters and PageGroup shares falling on Tuesday while Hays is little changed, although all three stocks have gained strongly since Friday after Hays raises its outlook.

Our earlier article on the European Commission’s planned easing of EU banking rules explained how Brussels is considering lowering some leverage-related capital demands, cutting reporting requirements, and revisiting deposit protection to boost competitiveness. It also highlighted the trade-off regulators face: making banks more flexible and competitive while avoiding steps that could weaken resilience or amplify funding and liquidity risks.

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