London-listed recruitment firm ditches dividend and cuts 15% of workforce after revenue fell 12% to £781.1m amid cautious client sentiment
Robert Walters has scrapped its final dividend after the recruitment firm’s profits were impacted amid cautious global sentiment surrounding hiring, reports BritPanorama.
Turnover at the London-listed company declined 12 per cent to £781.1m during the 2025 financial year – down from £892.1m.
The group posted an operating loss of £14.9m, reversing a £5.2m profit in 2024, affected by £4.4m in redundancy expenses, after average headcount was cut by 15 per cent year-on-year.
Its net cash position stood at £26.2m at year-end, down from £52.5m, following payment of the 2024 final dividend and reduced operating cash flows.
The board recommended no final dividend, a decision made to protect the balance sheet during an uncertain macroeconomic environment. This follows its choice not to distribute an interim dividend, as reported by City AM.
Robert Walters’ cost reduction target has been raised to at least £12m, up from £10m, to be fully achieved in 2027.
The company 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, whilst regional net fees in the Asia Pacific declined, though New Zealand demonstrated strong momentum.
The UK returned to growth in the second half. Despite the broader downturn, consultancy net fees increased 20 per cent for the group, and talent advisory fees nearly doubled.
Chief executive Toby Fowlston said: “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 HQ, Robert Walters has bases in Birmingham, Manchester and Milton Keynes.
The challenges faced by Robert Walters reflect broader uncertainty in recruitment across the globe, underscoring the need for adaptability in a changing economic landscape. Their focus on cost containment and strategic market presence will be critical as they navigate this unpredictable environment.
