Tech recruiter Parity will cut jobs as a slowdown in the sector means revenue will be lower than previously expected.
The tech sector has been hit with a wave of high-profile layoffs and hiring freezes over the past year, with a knock-on effect for recruiters.
The Southwark-based company said: “In line with many others within the recruitment sector, Parity has seen market conditions become more challenging over recent months with economic uncertainty resulting in clients and new business opportunities deferring hiring decisions.”
However, the company also noted that it won a place on a contract to recruit non-clinical NHS staff. This, it says, presents “a significant opportunity” for growth, and so Parity will focus more on the public sector going forward.
The firm will scale back its struggling private sector arm, “with a resultant reduction in headcount”. A Parity spokesperson could not be reached to confirm the number of job losses.
“With market conditions not expected to improve in the near term and a key client signalling a shift towards a more global supply chain, Parity is prioritising resources to exploit its strengths and opportunity within the public sector,” the company said. “As a consequence, the new business initiatives targeting the private sector, which included permanent recruitment services, have been scaled back and with a resultant reduction in headcount.
“Historically, Parity’s core business, servicing contract recruitment within the public sector, has been one of the most resilient areas when recruitment markets turn down. The company sees this as a core strength of the business and will be looking at how the company can leverage this to maximise value for shareholders.”
Parity shares rebounded after an initial fall and are up 0.4p to 3.4p today, as investors looked past the profit warning to the NHS contract.
