Recruiters cut costs as war and AI deter hiring

British recruiters are cutting costs to protect profits as geopolitical tensions and AI-driven hiring efficiencies reduce hiring momentum, with tariff and Iran-war uncertainties adding to the pressure. In results released Tuesday and last week, major recruiters Hays, PageGroup, and Robert Walters reported improved temporary hiring in the Americas and parts of Asia, while Europe stayed weak. Net fees fell across the sector, with Robert Walters reporting a 4% decline in second-quarter net fees and shares dropping after a sharp Monday rally. CEO Toby Fowlston said trading matched expectations and the firm is accelerating cost actions. Hays warned near-term conditions will remain challenging, expecting greater resilience in temporary and contracting than in permanent roles. The stocks have still gained 25% to 36% since Friday after outlook increases.