Robert Walters Reports £14.9m Loss Amid Global Hiring Downturn
London-listed recruitment firm Robert Walters has reported a significant operating loss of £14.9 million for the 2025 financial year, reversing a profit of £5.2 million in 2024. The company has scrapped its final dividend and reduced its workforce by 15 percent as revenue declined 12 percent to £781.1 million, down from £892.1 million the previous year.
Financial Performance and Cost-Cutting Measures
The group's net cash position stood at £26.2 million at year-end, a decrease from £52.5 million, following the payment of the 2024 final dividend and reduced operating cash flows. The board recommended no final dividend to protect the balance sheet during an uncertain macroeconomic environment, a decision that follows its earlier choice not to distribute an interim dividend.
Robert Walters has raised its cost reduction target to at least £12 million, up from £10 million, with full achievement expected by 2027. The loss was affected by £4.4 million in redundancy expenses as average headcount was cut by 15 percent year-on-year.
Regional Operations and Strategic Shifts
The company has shut down operations in Brazil and Canada and streamlined its US presence to concentrate on higher-growth markets. Across its regions, Northern Europe remains subdued, with France and Germany experiencing substantial falls, while regional net fees in the Asia Pacific declined, though New Zealand demonstrated strong momentum.
In the UK, the market returned to growth in the second half of the year. Despite the broader downturn, consultancy net fees increased 20 percent for the group, and talent advisory fees nearly doubled, highlighting some areas of resilience.
Leadership Outlook and Future Plans
Chief executive Toby Fowlston commented, "2025 was a third challenging year for global hiring markets, with client and candidate sentiment still cautious given the considerable macro and geopolitical volatility of the first half of the 2020s."
Looking ahead to 2026, the group expects net fees will stay marginally beneath 2025 figures. Fowlston stressed that the group will focus on "further meaningful reduction in the cost base" and speed up the cross-selling of "total talent solutions."
As well as its London headquarters, Robert Walters has bases in Birmingham, Manchester, and Milton Keynes, maintaining a strong presence in key UK cities despite the current challenges.
