Jefferies downgrades European recruiters amid structural risks

Randstad NV

08/01/2026 09:12

** Jefferies cuts ratings for European business and employment services firms, citing incremental structural challenges

** The broker double downgrades Randstad  RAND.AS to "underperform" and cuts Adecco  ADEN.S and Hays  HAYS.L to "underperform" from "hold"

** The companies' shares fall 4% to 7% by 0855 GMT

** "This time is different," Jefferies says, as it sees the sector's troubles moving to structural challenges from cyclical struggles

** Jefferies says it expects both Randstad and Hays to face another year of earnings decline

** Hays is the most at risk structurally and also has further dividend risk in 2026, Jefferies says

** The broker says short-term positive momentum from restructuring is priced in for Adecco, with risk coming from underlying weakness

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))