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Hays begins search for new CEO; half-year profit falls

Published 23/02/2023, 07:16
Updated 23/02/2023, 09:16
© Reuters.

© Reuters.

By Aby Jose Koilparambil

(Reuters) -Hays said on Thursday it was looking for a successor to long-serving Chief Executive Officer Alistair Cox as the global recruiter reported a lower interim profit due to tough market conditions in China and the United States.

The company said it was an "appropriate time" to commence the process to identify a successor to Cox, 62, its chief executive of over 15 years, and that he would remain in the role until a suitable candidate had been appointed.

Hays (LON:HAYS)' net fees doubled during Cox's tenure and he was instrumental in expanding the firm's operations as it invested heavily in information technology and data.

Cox's successor would be tasked with pursuing medium-term aspirations to almost double the size of its IT-focused division, and double profits in its largest market of Germany, Jefferies analysts said.

Hays, which largely focuses on white-collar roles and counts technology as its biggest sector, reported a near 5% fall in operating profit to 97 million pounds ($117 million) for the six months ended Dec. 31, which was at the top end of the company's forecast range.

The recruitment industry continues to battle a slowdown as elevated inflation levels, looming recession fears and the impact of the Ukraine conflict have forced companies globally to cut jobs or freeze hiring.

China lifted strict pandemic-related restrictions only in December, while a raft of major U.S.-based technology firms have started or hinted at massive layoffs as companies look to rein in costs to ride out the economic downturn.

Hays, which operates in 32 countries, said volumes in its temporary and contracting division, its largest, were building in line with normal trends in the new calendar year, while markets in the permanent division were facing challenges, a trend usually seen during economic uncertainty.

The company's rivals PageGroup, Robert Walters and Randstad have also flagged slowdown in hiring.

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