"Robert Walters has announced plans to ramp up cost-cutting measures after reporting a loss of £19.6 million in 2025, a significant decline from a profit of £500,000 in 2024. This downturn coincided with a 15% decrease in net fees, which totalled £274.2 million."
"To address these challenges, the company has reduced its global workforce by around 15%, with the UK being the most affected region, where fee-earning roles were cut by a quarter. The firm is now aiming for annual cost savings of at least £12 million by 2027, an increase from its previous target of £10 million."
"Additionally, the company has underscored the growing influence of artificial intelligence (AI) and ongoing economic uncertainty, which are contributing to companies' reluctance to make permanent hires and candidates' hesitation to change jobs."
Robert Walters, a recruitment firm, faced significant financial challenges in 2025, reporting a £19.6 million loss compared to a £500,000 profit in 2024. Net fees declined 15% to £274.2 million. In response, the company reduced its global workforce by approximately 15%, with the UK experiencing the most severe cuts, including a 25% reduction in fee-earning roles. The firm increased its cost-saving target to £12 million annually by 2027, up from £10 million. Management expects 2026 to remain difficult due to market volatility and cautious hiring sentiment. Analysts project further net fee declines of 3% to £265.4 million. The company attributes challenges to artificial intelligence adoption and economic uncertainty, which discourage permanent hiring and job transitions.
#recruitment-industry #cost-reduction #workforce-restructuring #hiring-market-volatility #ai-impact-on-employment
Read at London Business News | Londonlovesbusiness.com
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