The Caldwell Partners International Inc. (TSE: CWL), a Toronto-based executive search and recruiting firm, reported revenue fell 46.0% in its fiscal second quarter ended Feb. 28. The company also noted stabilization in overall hiring demand but at lower levels than the prior-year period.

Caldwell reported C$2.3million (US$1.7 million) in restructuring expenses from staffing reductions at IQTalent. It also reported C$266,000 (US$195,719) in restructuring expenses in lease costs for the exit to remote work at the firm’s San Francisco office.

“The second quarter brought stabilization in overall hiring demand, albeit at levels that were lower than the same period last year — a record-breaking fiscal year for us,” CEO John Wallace said. “Clients who have been broadly talking about resuming hiring have, in part, pushed those plans further into calendar 2023 pending more certainty on evolving economic conditions.”

The company’s IQTalent business saw further revenue erosion in the first part of the quarter, followed by stabilization in the past several months, according to Wallace. As a result, in January, IQTalent reduced staffing levels.

Caldwell acquired Nashville-based IQTalent in December 2020. It provides on-demand talent acquisition augmentation as a managed service to clients, which are typically in-house talent acquisition departments.

The March 1 spin off of IQTalent’s software business and related development team will further reduce costs going forward, and Caldwell is optimistic about its ability to return to profitability in the fiscal year, according to Wallace.

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Share price and market cap

Shares in Caldwell were up 4.76% as of 11:04 a.m. Eastern time to C$1.32 (US$0.99); they were 23.36% above their 52-week low, according to FT.com. The company had a market cap of C$32.77 million (US$24.47 million).