Hays, one of the world's biggest recruiters, said it expects to be loss-making in the summer.
This comes as it reported a 34% drop in fourth-quarter net fees today as companies slowed new hiring to ride out a downturn induced by the coronavirus crisis.
The recruitment firm said it trimmed headcount by 9% in the fourth quarter and cost base fell 21%, adding that cost reductions helped it break-even in the three-month period.
Hays operates in 33 countries.
It said full-year operating profit is expected to come in between about £130-135m, down from £248.8m last year.
Recruiters around the globe have been hammered by a hiring freeze during the health crisis, forcing even the major players to come up with contingency measures to cushion the blow.
"The pandemic has severely impacted all our markets globally - facing conditions far harsher than any I have known," Hays chief executive Alistair Cox said in a statement.
In April, Hays had raised about £200m to prop up its finances in the face of an expected collapse in fees.
