Adecco, a large global temporary staffing agency, reported that net profit dropped 83 percent in the first quarter.
Net profit reached 23 million euros (30 million dollars) during the first quarter of this year compared to 137 million euros during the first three months of 2008.
“Near term, management expects no reversal of current conditions and sees no clear signs of stabilization yet,” Adecco said in a statement.
Revenues in France, the group’s largest market, declined 32 percent during the first quarter year-on-year while in Germany, the fall reached the same level.
Revenues tumbled 18 percent in the United States and Canada and 42 percent in Britain and Ireland.
Adecco said that “weak permanent placement business” was weighing on results in Britain and Ireland.
By sectors, industrial showed the biggest decline in hiring, as revenues dropped 38 percent. This is followed by finance and legal which slid 23 percent, and engineering and technical which dropped 21 percent.
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May 8th, 2009 at 10:35 am
With the world economy in shambles, a lot of temporary agencies are seeing a decrease in employers taking on less temps in their companies. They are cutting back on any “fat” that their company has, and trying to get more out of the employees that they have. While this is good for efficiency on one hand, it is bad for those people who are out of work and need money to support their families.