ecruitment firm Hays has named a new boss to take the helm as it revealed falling annual profits and warned it will have to cut its consultant workforce further amid a weakening global jobs market.
The group said Dirk Hahn, managing director of Hays Germany and Continental Europe, Middle East and Africa, will take over from longstanding chief executive Alistair Cox on September 1.
He takes on the role at a more difficult time in the global recruitment sector, with Hays revealing it expects to slash its consultant workforce by around 3% to 4% in the three months to September as the group reins in costs due to falling fees.
It has already reduced its number of consultants by 6%, more than 500, since December.
In the UK and Ireland, its consultant workforce was slashed by 11% and by 7% in the second half.
The cuts have been made through staff turnover with no redundancies planned.
Hays reported pre-tax profits down 9% on a like-for-like basis to £192.1 million for the year to June 30.
Operating profits in the UK and Ireland tumbled 34% to £28.7 million as it said markets slowed “sharply” through the year, particularly in permanent recruitment.
While Hays notched up record fees of £1.3 billion, up 6% like-for-like over the year, it saw growth pull back markedly through the second half as economic uncertainty impacted recruitment.
Fee growth fell from 12% in the first six months to 1% in the second, with fees falling 2% in the final quarter and by 2% in June.
It expects fees to continue dropping in the first half of its new financial year.
Outgoing boss Mr Cox, who has led Hays for 16 years, said: “While we cannot control the macroeconomic environment, we do control our reaction to it.
“We acted swiftly to manage our capacity and costs in the face of toughening markets, delivering increased profits in our second half.”
Mr Cox will help with a smooth transition, working out a 12-month notice period until August 23 next year.
Mr Hahn said it was a “privilege to be appointed CEO of Hays, having been with the company for most of my career”.