PageGroup, a global recruitment firm, has issued a profit warning for 2025, forecasting earnings at the lower end of market expectations. The company revealed further job cuts and cited a deteriorating employment market across Europe as key challenges.
In the final quarter of 2024, PageGroup’s gross profits fell by 17.2 per cent. The UK market saw a 16.3 per cent drop in gross profits, while the European, Middle East, and African (EMEA) division—responsible for over half of the group’s revenue—reported a 15.8 per cent decrease.
To address these challenges, PageGroup reduced its fee-earner workforce by 2.4 per cent, equivalent to 130 roles, bringing the total headcount to 5,370. An additional 49 back-office roles were also eliminated during the quarter.
The company has also implemented cost-saving initiatives, including the closure of shared service centres in the UK and Singapore. Operations from these centres have been relocated to Barcelona, Buenos Aires, and Kuala Lumpur. These restructuring efforts incurred a one-off cost of £5 million.
The European job market, particularly in France and Germany, remains a significant concern for the firm. Candidate and client confidence continues to be impacted by ongoing macroeconomic and geopolitical uncertainty. This has led to slower interview-to-hire conversions and extended hiring timelines.
With a challenging economic environment expected to persist, PageGroup faces continued pressure in its largest markets. The company remains focused on strategic resource allocation and cost management to navigate these headwinds.
