Hit three times by job losses in the technology sector and weak economic conditions

SThree saw a significant decline in compensation in the first quarter against the backdrop of a subdued macroeconomic backdrop and large-scale layoffs within the technology sector.

The STEM specialist revealed that net fees fell 6 percent year-on-year to £93.7 million between the start of December and February 29.

Trading in the US and Germany, two of the company’s five largest markets, was affected by weak technology-related recruitment, while the former area was also hit by falling demand for life sciences roles.

Technology companies have continued to cut jobs in large numbers this year as high interest rates have driven up borrowing costs and people spend more time outdoors due to the lack of pandemic restrictions.

PayPal, Amazon, Microsoft, Google owner Alphabet and video game developer Electronic Arts are just some of the prominent names that have announced cuts since January.

Just over 50,000 job cuts have already been announced in the technology sector by 2024, after 263,180 losses last year. according to the website Layoffs.fyi.

Timo Lehne, managing director of SThree, said the group “has delivered a good performance in a strong comparative perspective and within a market environment that remains difficult from a new business perspective.”

While recruitment in the tech sector remained shaky, SThree experienced solid demand for tech jobs, especially from the renewable energy sector.

Lehne added: “While the sentiment we report is largely the same as the prior period, the strength of our contract renewals remains a particular highlight, demonstrating our customers’ need to retain critical STEM skills and flexible talent.”

Meanwhile, employment agency Staffline revealed it made a loss of £11 million last year, compared to a profit of £3.8 million in 2022.

The Nottingham-based company attributed the loss to impairment charges on the closure of a classroom training business at its PeoplePlus subsidiary.

Still, Staffline said it delivered a “robust performance”, with total revenue up 1 percent to £938.2 million, largely thanks to market share gains in its UK recruitment division.

The segment has won or renewed contracts with supermarket giants Tesco, Morrisons and Marks & Spencer, as well as food manufacturer Bakkavor and wine retailer Laithwaites.

Staffline CEO Albert Ellis said the result proved the “resilience of the group’s business model against a challenging macroeconomic backdrop and also the success of our strategy”.

Staffline Group shares fell by 3.7 percent at 8 p.m. on Tuesday afternoon Three shares were 2.1 percent lower at 415p.