UK's Robert Walters expects smaller loss and downplays AI impact on hiring

By Prerna Bedi

July 30 (Reuters) - British recruiter Robert Walters forecast on Thursday an annual loss closer to the narrower end of market expectations, as it bet on strength in Japan and the U.S., while its CEO downplayed the impact of AI on hiring.

Recruiters have been cutting costs to try to boost profits as geopolitical tensions and AI-driven efficiencies limit hiring levels that were already weak.

"We absolutely do not see AI having any impact at all when it comes to critical hiring decisions," CEO Toby Fowlston said in an interview, although he said AI had automated routine tasks within white collar roles.

Employers have reassessed staffing needs as they drive productivity by focusing investments in AI and temporary hiring.

Earlier this week, pharmaceutical giant AstraZeneca's CEO Pascal Soriot also questioned the narrative around AI-led job cuts. "I personally think that this story about AI killing jobs is a bit of a fake story," he said.

Shares in Robert Walters, which have lost nearly 10% of their value in 2026 so far, rose as much as 5.4% before handing back gains and trading flat by 1131 GMT.

ROBERT WALTERS IMPROVES OUTLOOK

The recruiter predicted operating loss towards the narrower end of analysts' expected range, which is a loss of between £14.2 million and £8.1 million in a company-compiled poll.

It continues to expect annual net fees slightly lower than year-ago levels.

Robert Walters, which recruits professionals across finance, accounting, and corporate roles, posted a smaller pretax loss of £6.8 million ($9.07 million) for the six months to June, versus a loss of £10.2 million a year earlier.

Last week, larger peer Randstad hinted at improving hiring demand.

($1 = 0.7493 pounds)

(Reporting by Prerna Bedi in Bengaluru with additional reporting by Nithyashree R B; Writing by Pushkala Aripaka; Editing by Sonia Cheema, Janane Venkatraman and Barbara Lewis)