The FTSE 250 recruiter is reshaping its global footprint around 16 core markets. Here is what the deal means for the sector, and where Australia sits.
Hays has sold its recruitment operations in six European countries to London-based private equity firm Meraki Capital for net cash proceeds of about £4 million, and confirmed it is reviewing options for a further seven markets as it sharpens its focus on its strongest territories.
The deal, completed on 16 June, covers Hays businesses in the Czech Republic, Denmark, Hungary, Luxembourg, Romania and Sweden. Those operations mainly provided specialist recruitment services to local clients. Hays said the sale would produce a modest non-cash loss in the second half of its 2026 financial year.
At the same time, the company said it is exploring options for its operations in Belgium, Brazil, Greater China, Malaysia, the Netherlands, Singapore and the United Arab Emirates. Taken together, those 13 countries, the six now sold and the seven under review, are expected to deliver broadly break-even pre-exceptional operating profit on around £85 million in net fees in the year to 30 June 2026. In short, they bring in revenue but very little profit, which helps explain why Hays is prepared to let them go.
The move continues a year of portfolio reshaping. Hays has already exited four other countries over the past 12 months and now plans to concentrate on 16 core markets where it believes it can build scale and hold leading positions. The strategy belongs to Mark Dearnley, confirmed as permanent chief executive last month after serving as interim CEO since February, when Dirk Hahn stepped down for personal reasons.
Dearnley said reshaping the portfolio to build scale in high-performing and high-potential markets remained “a key strategic priority for Hays.”
The reshaping comes during a prolonged slump in white-collar hiring. Hays recently reported that it had cut worldwide consultancy headcount by 14 per cent in the year to the end of March, alongside a 7 per cent reduction in non-consultancy staff, as net fees fell and profits came under pressure. The company’s shares rose modestly after the announcement.
Who is buying
For Meraki Capital, the acquisition is its largest to date. Founded in London in 2024 and led by Nick Gordon, the firm has built a recruitment-focused buy-and-build portfolio at speed, completing seven acquisitions since the start of 2026 and nine over the past two years across specialist white-collar and blue-collar staffing. Gordon described the deal as a hugely significant moment for the firm.
The carved-out businesses will keep their existing local leadership teams, and Hays and Meraki said they would maintain a working relationship to support continuity for clients and staff in the divested markets.
What it signals
The transaction fits a wider pattern across staffing, where owners and investors are pushing for profit and margin rather than headcount and market share. With hiring volumes soft, agencies are under pressure to generate more revenue from leaner teams and to exit markets that absorb management attention without returning much profit. For Hays, narrowing the footprint frees up capital and focus for the markets it rates most highly. For the businesses being sold, life outside a large listed parent can bring faster decision-making and more room to move.
The open question is talent. Several of Hays’ smaller markets have lost senior leaders over recent years, some leaving to start their own firms and others joining smaller, faster-moving competitors. Whether the carved-out operations thrive under Meraki will come down to the strength of the leadership left on the ground.
Where Australia sits
For the Australian market, the most telling detail is what is missing from both lists. Australia does not appear among the businesses sold or those under review, which places it among the core markets Hays intends to keep and grow. Hays is one of the larger recruitment brands operating locally, and the strategy signals that its Australian operations sit on the right side of the parent’s priorities. The immediate practical impact for clients and candidates here is limited, but the direction of travel is worth watching as Hays funnels resources toward its chosen markets.
Sources
- Hays plc company announcement / RNS (deal terms, country lists, 16 June completion, FY26 loss, 16 core markets, Dearnley quote).
- Staffing Industry Analysts and The Global Recruiter (deal detail, Gordon and Dearnley comments, Meraki portfolio).
- Proactive Investors and TipRanks (FTSE 250 status, share move, £85m net fees / broadly break-even on the 13 countries).
- PA wire via regional press (headcount cuts of 14 per cent consultancy and 7 per cent non-consultancy to end of March; Dearnley appointment).
- PitchBook, Insider Media and Business Sale Report (Meraki Capital background: founded 2024, Nick Gordon, recent acquisition activity).
Verification note: All figures and country lists corroborated against multiple reputable sources and the company announcement. Australia’s placement among core markets is an inference drawn from its absence on both the divested and under-review lists, not an explicit Hays statement. The strategic and talent-retention analysis is HireNote’s own read, not attributed comment.
