Recruitment firm Robert Walters has projected a breakeven point in 2024, following another decline in fees and additional job cuts.
The company reported a 17 per cent slump in net fee income across the group in Q4, falling to £75.5m from £91.4m during the same period last year, as reported by .
The firm experienced challenges across all its primary markets, with income dropping in Asia-Pacific, Europe, and the 海角视频. "Trading conditions remained challenging throughout the quarter," stated Robert Walters.
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London was a bright spot within the 海角视频, with fee income rising three per cent in the capital, contrasting with a 45 per cent drop in the regions as the Budget "impacted employer hiring plans". CEO Toby Fowlston commented: "2024 closed with conditions in global hiring markets remaining challenging – marked by muted client and candidate confidence."
He added: "As a result, we now expect a broadly breakeven position at the profit before tax level for the full year," With the recruitment industry facing foreseeable challenges, Robert Walters announced further job cuts during Q4.
The firm reduced seven per cent of its fee earners quarter-on-quarter and two per cent of its non-fee workforce. Its total headcount has decreased by 17 per cent over the past 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.
This update follows a report from rival recruiter Pagegroup, which just a day earlier divulged that profits would fall short of expectations, with additional job losses on the horizon. In the fourth quarter alone, the company reduced its fee earner roles by 130, predominantly in Europe and the 海角视频, while an extra 250 positions were culled in the first half of the year.
In December, shares in specialist recruiter SThree tumbled up to 40 per cent when it informed shareholders that fees had dipped more than a quarter, attributing the decline to "protracted challenging economic conditions".