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Global recruitment firm Hays revealed its profits have tumbled by a quarter as the jobs market remains challenging and employers take longer to hire.

The London-listed company also said its boss Dirk Hahn has stepped down for “personal reasons” after 28 years at the firm, and it was kickstarting the search for a chief executive.

For the second half of 2025, the group’s operating profit before exceptional items came in at £20.1 million, down 25% when compared like for like with the same period last year.

Fees collected by Hays dropped by 9% across the group, and also in the UK and Ireland, compared with the prior year.

This was largely driven by a 14% drop in permanent hiring fees, which Hays said reflected weak confidence among employers and candidates leading to a below average placement of roles and a longer period of decision-making.

Hays is among the biggest recruitment agencies in Europe, and its performance is closely tied to the strength of the jobs market for office-based roles in countries including the UK, Germany and France.

It makes money by charging companies a fee to find and place candidates in jobs, but has been impacted by a wider slowdown in hiring across many global markets.

The company said conditions were particularly challenging in Germany and France, with the former suffering a 19% decrease in fees from the automotive sector.

But it highlighted an improvement in temporary job recruiting in the UK and Ireland, where it returned to a profit.

Hays had 22% fewer consultants in the UK and Ireland at the end of the year, compared with the same point in 2024, as it continues to take “decisive action” to make its teams more efficient and bring in more income.

Meanwhile, the company said its chief executive Mr Hahn was stepping down “with immediate effect for personal reasons”.

The firm’s digital and technology chief, Mark Dearnley, will step into the role on an interim basis while the board searches for a permanent successor.

James Hilton, Hays’ chief financial officer, said: “Net fees declined by 9% in the first half against a backdrop of continued macroeconomic and political uncertainty.

“We are targeting the most in-demand sectors, roles and geographies, building stronger client relationships and increasing exposure to temporary and contracting recruitment, which will allow us to benefit from supportive long-term industry megatrends.”