The Caldwell Partners International Inc. (TSE: CWL), a Toronto-based executive search and recruiting firm, reported revenue fell 37.8% in its fiscal first quarter ended Nov. 30. The company also cited a slowing in demand at some clients.

“We experienced a slowing in our business segments in the last quarter of our record-breaking fiscal 2022,” Caldwell CEO John Wallace said. “That suppressed hiring environment has amplified throughout the first quarter of fiscal 2023, given our clients’ growing concerns about rising inflation, interest rates and an impending recession.”

Total revenue was C$23.9 million (US$17.7 million). The company also reported a net loss and an operating loss.

Caldwell reported the lion’s share of its operating loss was in its IQTalent segment, whose clients are largely technology and early stage startups, which are among the hardest companies hit in this current environment. IQTalent’s management has moved to cut costs, includeding a reduction in staff and third-party consultant headcount. Caldwell is also considering strategic alternatives for IQTalent’s proprietary software platform. IQTalent is based in Nashville and was acquired in December 2020. It provides on-demand talent acquisition augmentation as a managed service to clients, which are typically in-house talent acquisition departments.

Caldwell reported C$2.3 million (US$1.7 million) in restructuring expenses from staffing reductions at IQTalent and C$266,000 (US$196,900) in lease costs for the sublease and exit to remote work at the firm’s San Francisco office.

Wallace also noted clients are talking broadly about beginning to increase hiring further into the calendar year.

Share price and market cap

Shares in Caldwell were down 20.0% as of 1:09 p.m. Eastern time to C$1.20 (US$0.89); they set a new 52-week low today when they reached C$1.07 (US$0.79), according to FT.com. The company had a market cap of C$39.0 million (US$28.9 million).