Second-quarter revenue fell 4.5% in constant currency at Kelly Services Inc. (NASDAQ: KELYA, KELYB). The decrease was 3.9% on a reported basis for total revenue of nearly $1.22 billion. US staffing revenue fell 3.9% year over year; however, revenue in the company’s education staffing business jumped. In Europe, revenue fell across most geographies with the exception of Portugal. 

Gross margin also narrowed in the second quarter, primarily because of lower permanent placement fees as clients slowed their full-time hiring, Kelly Services reported. 

Net earnings jumped, though the company noted the second quarter of 2022 included a restructuring charge of $5.6 million in the quarter. Last month, Kelly had announced and workforce reduction. 

“In the second quarter, we remained focused on seeking out pockets of demand in more resilient markets, while the effects of ongoing macroeconomic uncertainty became more noticeable in certain parts of our portfolio,” Kelly President and CEO Peter Quigley said in a press release. 

“Our education segment and higher-margin outcome-based solutions in [professional and industrial] continued to deliver year-over-year growth, while lower demand for temporary and permanent placement services impacted results in our [professional and industrial] and [science engineering, technology and telecom] segments.” 

Here is Kelly’s revenue by specialty: 

Professional and industrial. Revenue fell 8.9% in constant currency. This specialty includes industrial, contact center and office/clerical staffing. 

Science engineering, technology and telecom. Revenue fell 7.0%. This specialty includes staffing in engineering, science and clinical, technology and telecom. 

Education. Revenue rose 32.6%. This specialty includes staffing in early childhood programs, special ed/needs, tutoring, higher education and executive search. 

Outsourcing and consulting. Revenue fell 8.2% in constant currency. This specialty includes MSP, RPO, PPO and consulting. 

International. Revenue fell 12.8% in constant currency. This specialty includes EMEA regional life sciences staffing and local niches. 

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Guidance 

Kelly expects revenue to remain flat or grow by 0.5% in the second half of 2023. 

Share price 

KELYA shares were down 4.32% to $17.49 as of 1:05 p.m. Eastern time; they were 30.43% above their 52-week low, according to FT.com.