Recruitment giant Hays has significantly reduced its global workforce as part of the Hays structural cost savings program. The firm slashed 14% of its consultancy staff over the past year to offset a sharp decline in hiring activity.
According to the latest IT news in Portugal, these "decisive actions" aim to protect the company's financial health while global fees continue to fall.
Q3 2026 Trading Update: Key Highlights
Workforce Reductions: 14% of consultants and 7% of support staff were cut globally. In the UK and Ireland specifically, consultant numbers were axed by 16%.
- Cost Efficiency: The firm is targeting £45 million in annual savings. A key priority is increasing recruitment consultant net fee productivity—ensuring the remaining team is more efficient.
- Financial Performance: While net fees dropped 8% globally (11% in Germany and 10% in the UK), the decline was less severe than the previous quarter.
- Profit Guidance: Despite the Hays consultancy headcount reduction 2026, the company maintained its underlying operating profit guidance at £45.2 million.
Outlook for the Recruitment Sector
Hays shares rose 7% following the report, as investors reacted positively to the aggressive cost-cutting. Management believes the current workforce is now "appropriate" for market conditions and expects staffing levels to remain stable in the next quarter.
For those tracking the recovery of the job market, industry meetups and IT events in Portugal are excellent venues to gauge when business confidence and hiring demand will return to pre-crisis levels.
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