Profit at Robert Walters wiped out as jobs market misery spreads
Recruiter Robert Walters said it expects to breakeven in 2024 as the firm revealed another fall in fees and further job cuts.
Net fee income slumped 17 per cent across the group in the fourth quarter, dropping to £75.5m from £91.4m in the same period last year.
The firm faced pressures across all its main markets, with income falling in Asia-Pacific, Europe and the UK.
“Trading conditions remained challenging throughout the quarter,” Robert Walters said.
London was a bright spot within the UK. Fee income rose three per cent in the capital compared to a 45 per cent drop-off in the regions as the Budget “impacted employer hiring plans”.
Toby Fowlston, chief executive said: “2024 closed with conditions in global hiring markets remaining challenging – marked by muted client and candidate confidence.”
“As a result, we now expect a broadly breakeven position at the profit before tax level for the full year,” he added.
Recruiters cut jobs
With the recruitment industry facing challenging conditions for the foreseeable future, Robert Walters revealed further job cuts during the fourth quarter.
The firm shed seven per cent of its fee earners quarter-on-quarter as well as two per cent of its non-fee workforce. Its total headcount has shrunk 17 per cent in the last year.
“The group continues to be highly selective in replacing fee earner natural attrition and prioritise strong fee earner average tenure ready for when market conditions improve,” it said.
The update comes just a day after fellow recruiter Pagegroup reported that profit would be lower than expected alongside further job cuts.
During the fourth quarter, the firm cut its fee earner headcount by 130, mainly in Europe and the UK. An additional 250 roles were axed in the first half of the year.