Adecco profit misses estimates in tough staffing market (updated)

Randstad NV

06/08/2024 05:53

(Adds background, cost cuts, peers and revenue; paragraphs 2-6)
       Aug 6 (Reuters) - Swiss staffing company Adecco  ADEN.S 
reported a second-quarter profit slightly below expectations on
Tuesday, as hiring volumes fell amidst the economic uncertainty
that has driven corporations to cut staffing costs and made
employees less prone to switch jobs.
    Adecco became the latest staffing provider to report a
difficult quarter as workers avoid switching jobs and companies
take longer to fill vacancies as economies slow down.
    Still, the Swiss firm's losses were less than the
competition's, partly thanks to cost cuts that reached 162
million euros ($177.4 million) by the end of June, above its 150
million euro target. 
    Dutch rival Randstad  RAND.AS  said market conditions had
remained challenging with subdued hiring when it reported a 7.5%
drop in its second-quarter revenues last month.
    The fortunes of Adecco, which supplies temporary and
permanent staff to offices, factories and logistics hubs, are
keenly watched for providing insight into the health of the
broader economy.
    Adecco's revenue fell to 5.84 billion euros in the three
months to the end of June, short of forecasts for 5.90 billion
euros, when adjusted for currency movements, trading days and
acquisitions. 
    It reported a 2% drop in its net income to 58 million euros
at a constant currency basis, versus the 59 million euros
expected by analysts on average in a company-provided consensus.
($1 = 0.9131 euros)

 (Reporting by Andrey Sychev and John Revill; editing by Milla
Nissi)
 ((andrey.sychev@thomsonreuters.com))