PageGroup cuts workforce further as jobs market woes deepen
The firm said it now expects full-year earnings at the lower end of the £49 million to £58.5 million range pencilled in by the City.
Recruitment firm PageGroup has cautioned profits will be towards the lower end of expectations and revealed more role cuts as it said the jobs market had weakened further across Europe.
The company said its group gross profits fell 17.2% to £196.7 million in the final quarter of 2024 – down 13% with currency movements stripped out.
Gross profits in the UK tumbled 19.1% across the European, Middle East and Africa (EMEA) division – which accounts for more than half of group earnings – and were 13.6% down in the UK across the quarter.
Over the full year, EMEA profits were 15.8% down and 16.3% lower in the UK.
It revealed further role reductions as its fee-earner workforce fell by another 2.4% – or 130 positions – to 5,370 during the quarter, but it added 49 back office roles globally.
Cost-cutting efforts also saw it close shared service centres in Slough and more recently Singapore over the past year, with activities switched instead to Barcelona, Buenos Aires and Kuala Lumpur.
These previously announced closures saw it take £5 million in one-off costs, according the group.
It now expects full-year earnings at the lower end of the £49 million to £58.5 million range pencilled in by the City.
Nicholas Kirk, chief executive of PageGroup, said: “Market conditions remained challenging in the fourth quarter and whilst most markets were sequentially stable, we experienced a further worsening in Europe, particularly in our two largest markets, France and Germany.
“The conversion of interviews to accepted offers remains the most significant area of challenge as the ongoing macro-economic uncertainty continues to impact candidate and client confidence, also extending the time-to-hire.”
On the group’s job cuts, he said: “We continue to review our fee earner headcount, making progress on our strategy by reallocating resources into the areas of the business where we see the most significant long-term structural opportunities.”
He cautioned a “high degree of macro-economic and geopolitical uncertainty remains across the majority of our markets, notably in France and Germany”.
Shares in the firm fell 4% in Monday morning trading.
Russ Mould, investment director at AJ Bell, said: “The trimming of profit guidance on soft conditions in Europe reflects an environment where firms are increasingly reluctant to hire because they are feeling unsure about the future.
“Given the uncertainty, it is hard to see where an improvement might come from in the short term.”
