Fees and profits fall at Hays, CEO steps down

(Sharecast News) - Shares in Hays fell sharply in morning trading on Friday, as the recruiter flagged a weaker jobs market, slashed the dividend and announced a change in leadership.

The FTSE 250 firm said Dirk Hahn, who has been with Hays for nearly 30 years, was stepping down with immediate effect for personal reasons. Hahn, 57, took a brief period of medical leave following surgery in November 2025 before returning in January.

Chief digital and technology officer Mark Dearnley will replace him on an interim basis while a search for a permanent successor is undertaken.

The announcement came as Hays posted a slide in net fees and profits for the six months to 31 December, after economic and political uncertainty weighed heavily on jobs markets worldwide. Net fees fell 9% to £453.3m on a like-for-like basis, with temporary and contracting fees down 7% and permanent slumping 14%.

As a result, pre-tax profits before one-off items fell 25% to £20.1m and the dividend was cut by 84% to 15p per share.

As at 1015 GMT, the stock had tumbled 11% at 39.9p.

Hays said the reduced payment was consistent with its revised capital allocation framework and dividend policy, which it first announced at the 2025 full-year results.

James Hilton, chief financial officer, said: "Net fees declined against a backdrop of continued macroeconomic and political uncertainty.

"However, we have executed our strategy well and our decisive actions delivered strong, sector-leading growth in net fee productivity, a structurally-improved cost base and improved profit performances in our UK and Ireland and Australia and New Zealand businesses."

Looking to the second half, Hays said temp and contracting had been "solid overall". But permanent job flow and activity levels remained "challenging", especially in France and Germany. "We continue to see slower client and candidate decision-making, leading to a longer time to hire," Hays noted.

Michael Findlay, chair, said of Hahn's departure: "During his tenure, he demonstrated exceptional leadership, notably in building our German business and resetting Hay's strategy. I wish him every success in the future."