- PageGroup reduced its commission-earning workforce by 100 more, to 5,751
- The company has cut more than 1,300 positions since its peak in 2022
PageGroup continued to cut jobs in early 2024 amid a challenging market backdrop in most territories.
The Surrey-based company reduced its workforce by another 100, or 1.7 per cent, to 5,751 in the first three months of this year.
It means the company has cut more than 1,300 positions since its employee numbers peaked at 7,071 at the end of the third quarter of 2022.
Not hiring: Surrey-based PageGroup reduced its workforce by another 100, or 1.7 percent, to 5,751 in the first three months of this year.
British recruitment firms have cut their own staff levels over the past two years as the global labor market has slowed, partly as central banks raised interest rates to curb rising inflation.
It also followed mass layoffs in the tech sector, which has been hit even harder as people spend less time online following the end of Covid-related restrictions.
Tech companies have announced more than 480,000 job losses since the beginning of 2022, including 60,000 this year alone, according to Layoffs.fyi industry tracker.
However, PageGroup CEO Nicholas Kirk said the company intends to maintain headcount “broadly at existing levels” so it can capitalize when market sentiment and confidence improve.
PageGroup’s gross profits fell 12.8 percent in constant currency to £219.7 million in the first quarter and 18 percent in March, although this also reflected Easter which took place during the month.
Poor trade in continental Europe caused profits to fall, with France, Germany and the Benelux countries recording double-digit percentage drops.
Profitability also suffered as employers took longer to make permanent hires given uncertain economic conditions, including in the UK, where PageGroup’s profits fell 19.2 per cent to £27.1 million.
Temporary recruitment has held up stronger, but profits from this segment still fell 6.7 per cent to £60 million.
page group actions were the worst performer of all FTSE 250 companies on Monday afternoon, falling 6.8 per cent to 451.2p.
Russ Mould, chief investment officer at AJ Bell, said PageGroup’s performance “paints a picture of a company hit by gusts of wind from all angles.”
He added: ‘There is not a single territory showing a progression of profits, and both permanent and temporary jobs are proving to be difficult terrain.
‘In this chaotic context, the company has to make cuts on its own. That means fewer recruitment consultants in the business.’
Fellow recruiter Robert Walters will announce a trade update on Tuesday, and Hays will do so the next day.