Robert Walters announced staff cuts as the firm faced challenging market conditions during the fourth quarter of 2024, with declines in net fee income and hiring activity across all regions. The company, which specialises in hiring for the legal, accountancy and technology sectors, now anticipates a “broadly breakeven” pretax profit for the full year.
Robert Walters is a London-based international recruitment firm established in 1985. The firm reported net fee income of £75.5 million for the three months ending December 31, marking a 17% year-on-year decline from £91.4 million. For the full year, net fee income totaled £321.5 million, down 17% from £386.8 million in 2023.
Permanent professional recruitment saw a sharper drop, falling 18%, compared to a 10% decline in temporary recruitment, while outsourcing income decreased by 14%.
CEO Toby Fowlston said: “As seen throughout the year, 2024 closed with conditions in global hiring markets remaining challenging – marked by muted client and candidate confidence. Fourth quarter fee income was slightly weaker than expected, and in addition further actions were taken on the cost base. Notwithstanding the market backdrop, we remain focused on our initiatives to strengthen the business. We are confident our strategy will drive a conversion rate in excess of pre-pandemic levels in the medium term as market conditions improve.”
Another round of staff cuts during the quarter brought the company’s total year-on-year headcount reduction to 17%, reducing the workforce to 3,294, including 1,330 fee-earning staff. Analysts at Panmure Liberum suggest there is potential to offset the lower headcount with productivity gains, but significant improvements in this area have yet to materialize.
Regionally, net fee income in Asia-Pacific fell by 15% in the fourth quarter, with stabilization in Australia offset by steep declines in New Zealand and South-East Asia. Europe saw a 21% drop, with France, Spain, and Germany encountering significant challenges.
In the UK, net fee income declined by 15%, with London outperforming regional offices. The “Rest of the World” segment recorded a 19% decline, driven by weak markets in the US and Latin America.
Robert Walters reported a strong balance sheet, with net cash of £53 million as of December 31, up 6% from £50 million at the end of September.
In addition to Robert Walters’ staff cuts, rival recruiter Hays announced that it had reduced its global workforce by approximately 600 roles to cut costs amid the slowdown.
See also:
Robert Walters Reports Noticeable Uplift in Job Vacancies
Struggles of Robert Walters and PageGroup in the London Job Market
“SHREK” firms