SThree to double down on AI amid hiring slump

🎯 Impact Sentiment: Concerning

📋 Summary

• SThree, a major London-listed recruiter, is cutting jobs in response to a slowdown in hiring demand.
• The company’s net fee income dropped by 12% during the summer, signaling business challenges.
• SThree plans to double its investment in artificial intelligence to adapt and streamline its operations.
• The push toward AI is directly tied to cost-saving measures and compensating for weaker hiring markets.

💡 JR Insights

• 💼 Implication: SThree's bet on AI means more traditional recruiting roles are at risk, while technical and AI-savvy skills will become more valuable in staffing and recruitment fields.
• 🚨 Risk: If AI takes over more core tasks, jobs in admin, support, and even recruitment consulting could shrink further. Employees who can’t retrain or upskill could face layoffs.
• ✨ Takeaway: Anyone in the recruiting industry should get comfortable with AI tools and data-driven methods. Those who focus only on classic headhunting are likely to be left behind.