Difficulties beset Robert Walters as they experience financial losses during a tough employment market
In the face of a challenging economic climate, recruitment firm Robert Walters remains optimistic about strategic progress as markets improve. However, the company has been affected by pronounced macroeconomic uncertainty, leading to a 14-16% decline in net fee income in the first half of 2025 compared to 2024.
The decline was particularly pronounced in Europe (around 22-23%) and the Asia Pacific (around 12-14%) regions. To mitigate these effects, Robert Walters has implemented cost-cutting measures, reducing operating costs by 4% through a 17% reduction in total headcount, including a 22% cut in fee earners. The company has also centralized some roles into global business services hubs to improve efficiency.
These efforts have come at a financial cost, with Robert Walters reporting an operating loss of £7.8 million in the half-year ending June 2025, compared to a small operating profit in the prior year period. The group also experienced a 12% fall in share price amid widening losses and has suspended dividend payments, with a potential reinstatement review scheduled for March 2026.
Despite the financial challenges, Toby Fowlston, the CEO of Robert Walters, expressed conviction in the strategic changes being made by the company. The board is continuing efforts to position the business for a return to profitable growth.
In addition to cost-cutting measures, Robert Walters is also focusing on strategic growth. The company is developing a full suite of talent solutions to meet changing client needs and future growth engines for the business. The firm is strengthening its specialist recruitment geographic portfolio to capitalise on opportunities in key markets.
The UK job market has continued to weaken, with the unemployment rate rising to 4.7%, its highest level in four years according to the Office for National Statistics (ONS). Despite this, Robert Walters is seeing benefits from its margin improvement program, a key underpinning of its medium-term ambitions.
The company anticipates further restructuring activities in the second half of the year, reflecting the ongoing strategy to streamline operations and adapt to lower trading volumes. The board anticipates no material improvement in hiring markets in the near term, implying that the focus on operational efficiency and strategic growth will continue.
Shares at recruiter Robert Walters are down 5%, reflecting the market's concerns about the company's financial performance. However, with a focus on strategic growth and operational efficiency, Robert Walters remains committed to navigating the current challenges and positioning itself for a return to profitable growth in the future.
The challenging economic climate has led Robert Walters to implement cost-cutting measures, such as reducing operating costs by 4% through a 17% reduction in total headcount, because of the pronounced macroeconomic uncertainty. Despite facing a 14-16% decline in net fee income in the first half of 2025, the company is optimistic about strategic growth, developing a full suite of talent solutions to meet changing client needs and identifying future growth engines for the business.
