Hays cautions over further job cuts as profits slump

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Details of the job cuts came as Hays reported pre-tax profits slumping 71% to £27.6 million in the six months to December 31 as net fees tumbled 11%. “We acted decisively to drive consultant productivity, better align our operations to market conditions and opportunities, and reduce costs.” He added: “This said, I am not satisfied with our profit performance.” We continue to see slower client and candidate decision-making, leading to a longer time to hire Hays Hays is reviewing business lines and its country presence as part of its overhaul, with the group having a presence in 33 countries. “Our key markets continue to be supported by skill shortages, and we expect to see some further fee benefit in the second half from the positive effects of wage inflation globally, albeit at lower levels than in the first half, with fee margins stable.” In the UK and Ireland net fees fell by 14% in the group’s first half, while earnings tumbled 63% to £5.7 million. Jefferies analysts said that across Hays, “current trading is better than December”, but cautioned it is facing a “tough March comparison” from a year earlier, when the group saw record net fees.