SThree Warns of Prolonged Hiring Slowdown, Shares Plunge 26%

The recruitment firm cites economic and political uncertainties for delays in hiring decisions, forecasting a sharp profit decline in 2025.

SThree, a STEM-focused recruitment firm, reported a 9% decline in fee income for the year ending November 2024, with a sharper 15% drop in the final quarter.
The company revised its profit forecast for 2025 to £25 million, a 62% reduction from previous analyst estimates of £67 million.
SThree attributes the ongoing hiring slowdown to economic uncertainty, political instability in Europe, and hesitancy from both employers and employees to make changes.
The UK and Europe, particularly Germany and France, were the firm's weakest-performing markets, with UK fee income down 14% year-on-year.
SThree's share price fell to a four-year low, dragging down shares of competitors Hays and PageGroup as the recruitment industry continues to struggle.