The Adecco Group reported first-quarter revenue was flat year over year on an organic basis at 5.72 billion euros (US$6.16 billion). Some Adecco segments reported revenue growth, while others cited declines.

Growth took place in the global staffing firm’s career transition business (outplacement), where revenue rose 9% on an organic basis. Its “outsourcing, consulting and other services” business also saw revenue rise 7% organically. However, revenue fell 3% organically in its flexible placement business and was down 16% in its permanent placement business.

“We achieved revenue stability and maintained firm pricing discipline amidst challenging market conditions while driving further cost improvement across the business,” CEO Denis Machuel said in a press release.

In the company’s Adecco business, its largest business unit, revenue rose 1% on an organic basis to 4.37 billion euros (US$4.70 billion).

The company cited strong growth in Adecco’s Asia Pacific business, where revenue rose 14% year over year on an organic basis. Revenue also rose in Germany, Switzerland and Austria as well as in Southern Europe, Eastern Europe, the Middle East and Africa. On the other hand, Adecco’s Americas business was roughly flat with a decrease of 1% year over year.

The Americas business line saw revenue in Latin America rise 25%, but North American revenue fell 12% on an organic basis. The company said that IT and autos were weak in North America and manufacturing and logistics were soft.

In the Akkodis business unit, revenue fell 2% with the company citing a tough tech staffing market. Akkodis staffing revenue fell 20% organically, but consulting and solutions revenue rose by 5%.

Akkodis’ North America revenue fell by 14% organically.

“Akkodis faced ongoing tech staffing headwinds while achieving solid growth in its higher-value consulting business, which lifted overall profitability,” Machuel said.

In the Adecco Group’s third business unit, LHH, revenue fell 5% on an organic basis in the first quarter. However, Pontoon, which is included in this business unit, saw revenue grow by 8% in the first quarter with growth led by direct sourcing. In addition, career transition and mobility revenue rose by 9%. Still, recruitment solutions revenue fell by 16%, though the company cited signs of stabilization in US perm professional recruitment.

Earlier this week, the Adecco Group announced it was incorporating its Hired online recruitment platform into its LHH Recruitment Solutions business.

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Guidance

Looking ahead, the Adecco Group said it plans to gain market share even amid a challenging macroeconomic environment.

Share price

Shares in Adecco Group closed down 0.62% to 32.04 Swiss francs (US$35.37). They were 18.23% above their 52-week low.