Robert Walters: Recruiter’s income slumps as tariff pressures bite
Recruiter Robert Walters took a hit to income in the second quarter of 2025 as economic pressures weighed on hiring.
The group recorded a 13 per cent slump in net fee income to £72.7m as “macroeconomic uncertainty became more pronounced”.
Fee income from specialist professional recruitment fell 14 per cent to £60.7m. Meanwhile, recruitment outsourcing net fee income was down six per cent to £12m.
The UK managed to skirt sharper drops, with fee income falling eight per cent, compared to 14 per cent in Asia and 23 per cent in Europe.
Chief executive Toby Fowlston said: “Geographically, we continued to see the most challenging conditions in Europe, with a more resilient performance in the UK and stable trends in Asia-Pacific.”
The recruiter’s total headcount fell two per cent quarter-on-quarter to 3,125. This marked a 14 per cent annual drop. Fee earners – revenue generating roles were down 17 per cent year-on-year, whilst non-fee earners were down ten per cent but left unchanged from the first quarter.
The group said it would be “highly selective in replacing fee earner natural attrition and is allocating resources in the front office to areas with the most compelling returns.”
Robert Walters boss: Macro woes worsened in second quarter
Fowlston reiterated the heightened economic pressures in the second quarter, compared with the first, after President Donald Trump launched his tariff onslaught on the US’ trading partners damaging global confidence.
Trump slapped steep levies across Europe and Asia at the beginning of the quarter. Whilst the UK was originally in the fray, a trade deal brokered with US in early May helped skirt deeper woes.
Fowlston said: “We remain focused on our strategic initiatives to strengthen the business. We are rigorously engaged in improving fee earner productivity across our markets, driving efficiencies in our front and back-office teams, optimising our office network and leveraging more co-ordinated procurement.
“In today’s rapidly changing world of work, clients need a wider range of services than before. We have a full suite of talent solutions to support them, delivered by experienced and motivated teams, and remain excited by the opportunity we have to win as markets improve.”