The Adecco Group, which ranks among the largest global staffing firms, reported first-quarter revenue rose 3% on an organic basis, adjusted for trading days, to €5.89 billion (US$6.41 billion). However, North America revenue in its Adecco business unit slipped. The company also reported revenue in its career transition outplacement business jumped 63% on a reported basis.

“In LHH, our career transition business actively captured further corporate restructuring projects resulting in record high performance levels, while Ezra, our digital coaching business, also posted excellent growth,” CEO Denis Machuel said.

Adecco Group’s revenue is divided into three business units: Adecco, LHH and Akkodis.

Adecco. In the company’s Adecco business unit — the largest unit, which provides staffing, perm placement, outsourcing and managed services — first-quarter revenue rose 3% on an organic basis, trading days adjusted. Adecco’s North America revenue fell 8% year over year with the company citing the impact of an uncertain macroeconomic environment. Still, the company noted fill rates improved in the US.

On the other hand, Adecco’s Latin America revenue rose 18% with Argentina, Brazil and Mexico performing well, according to Adecco Group.

 Adecco also experienced strong growth in Germany where revenue rose 13% while Swiss and Austrian revenues were flat. Asia Pacific saw strong growth as well, with revenue up 10% in the first quarter.

LHH. Revenue in the LHH business unit was flat year over year; however, career transition outplacement revenue rose 63% to record levels driven by business in the US and UK, according to the company. But revenue fell by 8% year over year in its learning and development operations, and the company noted General Assembly and talent development revenues were subdued while Ezra — a digital coaching business — saw revenue rise 45%.

The company said revenue in LHH’s Pontoon business, which provides MSP and RPO, was flat with growth hindered by subdued demand in tech. Also, Hired’s revenue was challenged by the downturn in the US technology sector.

Akkodis. First-quarter revenue rose 4% at Akkodis, which provides IT and engineering staffing. North America revenue at Akkodis rose 1%. Meanwhile, revenue increased 8% in Northern Europe and rose 6% in Southern Europe. Asia Pacific revenue was up 5%, with Japanese revenue rising 10%.

Looking at revenue by service line instead of business unit, flexible placement revenue rose 4% organically (not adjusted for trading days) to €4.43 billion (US$4.82 billion) while permanent placement revenue rose 1% to €196 million (US$213 million).

Career transition outplacement revenue rose 60% organically (not adjusted for trading days) to €116 million; the increase was 63% on a reported basis. Outsourcing, consulting, other services revenue rose 28% on an organic basis, not adjusted for trading days, to €1.07 billion (US$1.16 billion). Training, upskilling and reskilling revenue was flat at €88 million (US$96 million).

Guidance

Adecco Group forecast second-quarter gross margin for the second quarter to be broadly in line with first-quarter levels.

Share price and market cap

Shares in The Adecco Group closed down 2.31% to 28.72 Swiss francs (US$32.33); shares were 8.87% above their 52-week low, according to FT.com. The company had a market cap of 4.93 billion Swiss francs (US$5.55 billion).