Shares in Hays see-sawed on Wednesday morning as the recruiter revealed it had offloaded operations across six different countries.
The FTSE 250 human resources firm said it had banked £4m on the sale of operations in the Czech Republic, Denmark, Hungary, Luxembourg, Romania and Sweden.
The group expects the transaction to lead to a non-cash loss on sale to be recognised in the second half of 2026.
It added it was “exploring options” in Belgium, Brazil, Greater China, the Netherlands and UAE to further shake-up its portfolio.
The combined operating profit for the 13 countries targeted in the reshaping is expected to break-even in the next financial year with around £85m in net fees.
The firm’s stock was up three per cent to nearly 38p on open before falling into the red as investors digested the move.
Mark Dearnley, chief executive of Hays, said: “Reshaping our portfolio to provide a sharper focus and build scale in high performing and high potential markets remains a key strategic priority for Hays.”
Recruiters face fee slump
The move comes amid a bruising period for the jobs market. In the UK, acountancy firm BDO’s employment index hit a 15 year low in March as firms remained cautious over cost pressures.
Dearney was unveiled as Hays’ new top boss in May having served on an interim basis since February 2026, following previous boss Dirk Hahn stepping down for “personal reasons” after 28 years at the London-listed company.
Operating profit came in at £20.1m for the firm in the last financial year, down 25 per cent when compared with the same period the year prior.
The recruiter suffered from a nine per cent drop in fees, which it blamed on weak confidence among employers and candidates leading to a low average placement of roles and longer decision-making.
STEM-focused recruiter SThree revealed a slump across its UK operations this week with fees falling 19 per cent to £11.6m.
Recruiter fees reflect the cost paid by an employer to fill a vacancy,
SThree’s group-wide fee slump was softened by 12 per cent growth in the US and 36 per cent in Japan.