{"id":7539,"date":"2025-08-21T09:50:00","date_gmt":"2025-08-21T09:50:00","guid":{"rendered":"https:\/\/sawahsolutions.com\/lap\/hays-warns-profits-have-collapsed-as-germany-and-permanent-hiring-drag-recovery\/"},"modified":"2025-08-21T20:04:17","modified_gmt":"2025-08-21T20:04:17","slug":"hays-warns-profits-have-collapsed-as-germany-and-permanent-hiring-drag-recovery","status":"publish","type":"post","link":"https:\/\/sawahsolutions.com\/lap\/hays-warns-profits-have-collapsed-as-germany-and-permanent-hiring-drag-recovery\/","title":{"rendered":"Hays warns profits have collapsed as Germany and permanent hiring drag recovery"},"content":{"rendered":"

<\/p>\n

\n

Hays PLC reported an 11% fall in net fees and a 90% plunge in pre-tax profits as permanent placements weakened and Germany\u2019s autos-exposed market hit revenues, prompting an aggressive cost-cutting plan targeting c.\u00a380m of annual savings and about 1,000 job cuts.<\/p>\n<\/div>\n

\n

Hays PLC, the global recruitment group, delivered a sobering update on its full-year results, painting a picture of a hiring market still mired in uncertainty across its biggest geographies. In the year to 30 June, the company reported net fees of \u00a3972.4 million, down 11% on a like-for-like basis, with permanent recruitment the weakest link as volumes contracted sharply across major markets. The firm said the difficult market translated into a dramatic drop in profitability, with pre-tax profits tumbling by 90% year on year to just \u00a31.5 million and profit before exceptional items down by around two-thirds to \u00a332.2 million. The numbers underline a stark reality for Hays as it grapples with a combination of macroeconomic headwinds and sector-specific softness, particularly in Germany, which the group has long viewed as a key driver of profits.<\/p>\n

The company has responded with an aggressive cost-control programme designed to reshape its cost base in a slower-for-longer environment. Hays disclosed around \u00a335 million of annual structural savings and laid out a target to achieve a further \u00a345 million of annual savings by FY29, lifting the cumulative programme to about \u00a380 million. As part of that effort, the group has closed or merged 29 offices over the past year and reduced its recruitment consultant headcount by roughly 14%, a global move that coincided with the elimination of nearly 1,000 roles worldwide, including about 350 in the UK and Ireland. Despite these measures, management warned that activity in July and August had not meaningfully improved and it was too early to judge September, a traditionally important trading month for the sector. The company attributed its stubbornly weak results to a persistent slow jobs market and the particular weakness of Germany, while emphasising that its strategy remains focused on prioritising in-demand sectors, roles and geographies and expanding exposure to temporary and contracting recruitment. The market has reacted with caution; current trading in the near term was described as broadly in line with expectations, according to the group\u2019s update in mid-July. According to the company\u2019s statements reported by market observers, the outlook hinges on a broader recovery in hiring activity and the timing of market stabilisation, especially in Europe\u2019s autos-intensive economy.<\/p>\n

Beyond Germany, analysts noted that the broader macro environment continues to weigh on the group\u2019s earnings trajectory. Reuters highlighted that the full-year pre-exceptional operating profit was guided towards around \u00a345 million, a fall of more than 57% versus consensus expectations, with the firm pointing to a broad slowdown in permanent hiring and longer decision times across regions. Germany\u2019s exposure to the automotive sector and tariff concerns contributed to the weakness, underscoring the challenge of translating cost discipline into sustained profitability. The Guardian likewise reported that profits are expected to be halved in the face of global hiring slowdowns, with autos demand and tariff chatter amplifying weakness in the European market. Meanwhile, City A.M. noted that management continues to press ahead with its efficiency drive while maintaining a focus on productivity improvements, even as current trading remains subdued.<\/p>\n

Taken together, the updates reflect a company that has acted decisively to shore up margins in a difficult environment, while remaining unperturbed about the longer-term opportunity set in its core markets. The scale of cost savings and office consolidation points to a company intent on preserving cash flow and competitive position during a period of structural nerves in the labour market. However, with Germany continuing to weigh on the group\u2019s profitability and with the broader hiring cycle still uncertain, investors and clients alike will be watching closely for signs of a meaningful upturn in client confidence and candidate activity. Industry observers emphasise that the next several quarters will be critical in determining whether Hays can translate its cost-base reductions into a sustainable improvement in profits as market conditions gradually improve.<\/p>\n

Reference Map:<\/p>\n

Source: Noah Wire Services<\/a><\/p>\n<\/p><\/div>\n

\n

Noah Fact Check Pro<\/h3>\n

The draft above was created using the information available at the time the story first
\n emerged. We\u2019ve since applied our fact-checking process to the final narrative, based on the criteria listed
\n below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
\n warrant further investigation.<\/p>\n

Freshness check<\/h3>\n

Score:
\n <\/span>7<\/p>\n

Notes:
\n <\/span>\u2705 The narrative relies on Hays PLC\u2019s company preliminary report published 21 August 2025 (full-year numbers and measures) \u2014 this is the primary, authoritative disclosure and justifies a high freshness rating for the finalised figures. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com)) \u26a0\ufe0f However, a substantially similar story (a profit warning \/ downgrade) first appeared on 19 June 2025 (company trading update \/ profit warning) and was widely covered \u2014 that earlier narrative pre-dates these final numbers by >7 days and is material to context. ([reuters.com](https:\/\/www.reuters.com\/world\/uk\/british-recruiter-hays-forecasts-57-annual-profit-slump-hiring-slowdown-2025-06-19\/?utm_source=chatgpt.com), [proactiveinvestors.co.uk](https:\/\/www.proactiveinvestors.co.uk\/companies\/news\/1073255\/hays-shares-drop-14-as-profit-warning-highlights-slump-in-hiring-1073255.html?utm_source=chatgpt.com)) \ud83d\udd70\ufe0f Editors should note: June 19 covered the profit downgrade; the 21 Aug RNS supplies the confirmed FY25 totals (net fees \u00a3972.4m, profit before tax \u00a31.5m, pre-exceptional PBT \u00a332.2m) and the cost\u2011savings\/office\/headcount detail. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com))<\/p>\n

Quotes check<\/h3>\n

Score:
\n <\/span>3<\/p>\n

Notes:
\n <\/span>\u26a0\ufe0f The direct quotes attributed to Dirk Hahn appear verbatim in the company\u2019s RNS \/ preliminary report (21 Aug 2025) and have been reproduced by multiple outlets \u2014 i.e. the wording is not exclusive to the Independent and is reused corporate text. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698), [independent.co.uk](https:\/\/www.independent.co.uk\/news\/business\/europe-hays-germany-b2811509.html)) \ud83d\udec8 A similar theme and related phrasing have appeared in Hays\u2019 earlier prepared remarks and interim statements (so some language is recurring), but the exact quote block used in the piece matches the 21 Aug RNS. ([marketscreener.com](https:\/\/www.marketscreener.com\/quote\/stock\/HAYS-PLC-4000880\/news\/Hays-Financial-document-Copy-of-Prepared-Remarks-FINAL-49112785\/?utm_source=chatgpt.com), [investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698)) \u2705 If the article claims the quote is an exclusive interview, that would be inaccurate; it is a company comment published in the RNS.<\/p>\n

Source reliability<\/h3>\n

Score:
\n <\/span>9<\/p>\n

Notes:
\n <\/span>\u2705 Core factual claims (financials, headcount, cost-savings) are traceable to the firm\u2019s regulatory filing (RNS \/ preliminary report) \u2014 a primary and authoritative source for company financial disclosure. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com)) \u2705 The narrative is corroborated by major reputable outlets (Reuters, The Guardian, Reuters\u2019 June trading-update coverage) which increases confidence. ([reuters.com](https:\/\/www.reuters.com\/world\/uk\/british-recruiter-hays-forecasts-57-annual-profit-slump-hiring-slowdown-2025-06-19\/?utm_source=chatgpt.com), [theguardian.com](https:\/\/www.theguardian.com\/business\/2025\/jun\/19\/recruiter-hays-warns-global-slump-in-hirings-halve-its-profits?utm_source=chatgpt.com)) \u26a0\ufe0f A number of wire\/aggregator pages republished the RNS verbatim (MarketScreener \/ Investegate) \u2014 this is normal for corporate news but means the story is largely the company\u2019s messaging rather than independent investigative reporting. ([marketscreener.com](https:\/\/www.marketscreener.com\/news\/hays-preliminary-results-for-the-year-ended-30-june-2025-press-release-ce7c51d3d881f621?utm_source=chatgpt.com), [investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com))<\/p>\n

Plausability check<\/h3>\n

Score:
\n <\/span>8<\/p>\n

Notes:
\n <\/span>\u2705 The headline claims and numeric details (net fees \u00a3972.4m, pre-exceptional operating profit ~\u00a345.6m, profit before tax \u00a31.5m, ~\u00a335m realised savings and target for further \u00a345m to FY29, 29 offices closed, ~14% consultant reduction) match the company\u2019s RNS and are therefore plausible. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com)) \u26a0\ufe0f Minor phrasing differences: the article\u2019s phrase \u201celimination of nearly 1,000 roles worldwide\u201d aligns with the RNS consultant headcount fall (7,045 \u2192 6,070 \u2248 975 consultants) but the RNS also shows non-consultant reductions \u2014 total role change depends on which categories are counted; the exact \u201cabout 350 in the UK and Ireland\u201d figure is reported by media summaries but is not given as a single-line figure in the RNS and should be verified if precision is required. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698), [standard.co.uk](https:\/\/www.standard.co.uk\/business\/business-news\/europe-germany-german-b1243866.html?utm_source=chatgpt.com)) \u26a0\ufe0f The June 19 profit\u2011warning narrative differs in emphasis (an earlier downgrade \/ guidance change) and pre-dates the RNS release \u2014 treat June coverage as a separate (earlier) event that the 21 Aug RNS confirms\/updates. ([reuters.com](https:\/\/www.reuters.com\/world\/uk\/british-recruiter-hays-forecasts-57-annual-profit-slump-hiring-slowdown-2025-06-19\/?utm_source=chatgpt.com))<\/p>\n

Overall assessment<\/h3>\n

Verdict<\/span> (FAIL, OPEN, PASS): PASS<\/span><\/p>\n

Confidence<\/span> (LOW, MEDIUM, HIGH): HIGH<\/span><\/p>\n

Summary:
\n <\/span>\u2705 The report\u2019s central factual claims are supported by Hays PLC\u2019s official RNS \/ preliminary report published 21 August 2025 and by coverage in major outlets; the numbers, cost\u2011saving targets and broad headcount\/office actions are traceable to the company filing, so the piece passes basic factual verification. ([investegate.co.uk](https:\/\/www.investegate.co.uk\/announcement\/rns\/hays–has\/preliminary-report-2025\/9066698?utm_source=chatgpt.com)) \u26a0\ufe0f Major risks to note: (1) this is largely company-sourced content \/ press release text (quotes and figures are drawn from the RNS and have been widely republished) so originality is low \u2014 readers should be clear they are reading a company update rather than independent investigative reporting; ([marketscreener.com](https:\/\/www.marketscreener.com\/news\/hays-preliminary-results-for-the-year-ended-30-june-2025-press-release-ce7c51d3d881f621?utm_source=chatgpt.com)) (2) a related profit\u2011warning narrative was published on 19 June 2025 and some outlets reported earlier guidance differences \u2014 that prior coverage should be referenced for full context because it pre-dates this RNS by >7 days; ([reuters.com](https:\/\/www.reuters.com\/world\/uk\/british-recruiter-hays-forecasts-57-annual-profit-slump-hiring-slowdown-2025-06-19\/?utm_source=chatgpt.com)) (3) small discrepancies in how reductions are described (e.g. \u201cnearly 1,000 roles\u201d vs total headcount figures across consultant\/non-consultant categories, and the ‘about 350 in the UK & Ireland’ line) should be clarified against the RNS if exact counts are important \u2014 otherwise the piece is materially accurate. \u203c\ufe0f Overall: PASS (HIGH confidence) \u2014 accurate reporting of a company disclosure, but flagged for being primarily republished corporate messaging and for the presence of an earlier, related June profit-warning story. \ud83d\udd70\ufe0f<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hays PLC reported an 11% fall in net fees and a 90% plunge in pre-tax profits as permanent placements weakened and Germany\u2019s autos-exposed market hit revenues, prompting an aggressive cost-cutting plan targeting c.\u00a380m of annual savings and about 1,000 job cuts. Hays PLC, the global recruitment group, delivered a sobering update on its full-year results,<\/p>\n","protected":false},"author":1,"featured_media":7540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[],"class_list":{"0":"post-7539","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-london-news"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/posts\/7539","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/comments?post=7539"}],"version-history":[{"count":1,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/posts\/7539\/revisions"}],"predecessor-version":[{"id":7541,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/posts\/7539\/revisions\/7541"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/media\/7540"}],"wp:attachment":[{"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/media?parent=7539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/categories?post=7539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sawahsolutions.com\/lap\/wp-json\/wp\/v2\/tags?post=7539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}