Europe’s biggest recruitment firm to make 250 job cuts
The largest European recruitment company, Hays, has announced 250 job cuts in the UK, stating that increased pricing pressure has resulted in a cut back in the number of temporary jobs due to the recession.
Fees will also continue to fall as wages fall and net fees from temp-workers have fallen for the first time in over 6 years, whilst fees for short-term workers have fallen for the eight successive month.
According to the Office for National Statistics, the average weekly wage in the UK has fallen by 2.2 percent to £446.50.
Taking into account worldwide operations, Hays has had to make an 11 percent cut in staff, which brings about a total reduction of 19 percent for the financial year to date.
The company has stated that in the two main markets of operation (UK and Australia), the prevailing market conditions are going to remain tough for some time as unemployment in Australia stands at 5.7 percent, the highest for 17 years.
However contingency plans are in place and the company is confident of weathering the storm thanks to a solid balance sheet.
Hays finance director, Paul Venables, believes that 20 percent of the registered recruitment companies could leave the market, which will mean larger firms are in a stronger position to take advantage when the market grows.