Recruiter axes staff amid hiring slowdown

ROBERT WALTERS has axed hundreds of staff as it battles a slowdown in hiring around the world.

The recruitment consultancy said it had cut 220 roles in the last three months of 2022, taking its total headcount down to 3,980. The company reported a 13pc slowdown in fee income to £91.4m as companies around the world have had their hiring plans derailed by higher interest rates.

Toby Fowlston, the chief executive, said: “Despite the challenging macro economic conditions, the group has delivered a resilient fourth quarter and FY23 profit before tax will be in-line with market expectations.”

He added: “Our ongoing focus on productivity, our management of costs, and commitment to retaining core consultant capacity, positions us well to capitalise on growth opportunities when conditions improve.”

Robert Walters’ struggles come as Britain finds itself in the grip of the longest slump in jobs vacancies on record as higher interest rates knock the labour market.

A total of 949,000 positions were advertised in the three months to November, according to the Office for National Statistics, which was down almost a quarter of a million from the number of posts advertised a year ago.

Higher borrowing costs have made it more expensive for companies to expand, with interest rates standing at 16-year highs of 5.25pc.

Tony Wilson, director of the Institute for Employment Studies, said: “The Bank of England appears to be getting what it has wanted through monetary policy: we are definitely getting a slowdown in the labour market.”

Rival recruiter Hays announced on Tuesday it had axed 650 jobs to offset what it called a “clear slowdown” in the labour market. Shares dropped 7pc after it issued a profit warning.