UK's Hays sells six European units to Meraki Capital for $5.3 million on hiring slowdown
UK's Hays sells six European units to Meraki Capital for $5.3 million on hiring slowdown June 17 (Reuters) - British recruiter Hays HAYS.L said on Wednesday it has sold its businesses in six European countries to private equity firm Meraki Capital for £4 million ($5.37 million), and is considering an exit from additional regions as it responds to a prolonged slowdown in global hiring.
The recruitment sector has been under pressure to improve margins amid challenging macroeconomic conditions. Factors such as geopolitical tensions, high interest rates and growing adoption of AI-driven efficiencies have weakened business confidence and slowed hiring activity.
Here are some details:
Hays has completed the sale of its Czech Republic, Denmark, Hungary, Luxembourg, Romania, and Sweden businesses and said it is exploring options for Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore, and the UAE.
All 13 countries combined are expected to deliver a broadly break-even pre-exceptional operating profit of roughly £85 million in net fees in the year ending June 30, 2026.
Hays, which exited from four other countries over the past year, said it will focus on its remaining 16 core countries going forward.
($1 = 0.7451 pounds)
(Reporting by Nithyashree R B in Bengaluru; Editing by Sherry Jacob-Phillips)