Randstad nv reported challenging macroeconomic conditions in the fourth quarter resulted in decreased hiring by clients. Revenue in the quarter fell 8.6% year over year per working day on an organic basis.

“The global macroeconomic environment remains uncertain, and this is influencing the decision-making of clients and talent,” CEO Sander van ‘t Noordende said in a press release. “That said, labor markets remain tight, and we continue to demonstrate our ability to adapt and perform in these changing market conditions.”

US revenue fell 15% year over year, while Canadian revenue declined 11%. Revenue in the US staffing/in-house services segment was down 17% year over year, while US professionals revenue fell 12% year over year. However, Randstad noted Latin America revenue rose 11%.

Randstad’s permanent placement fees fell 26% year over year. In North America, perm fees fell 31%.

Revenue in Randstad’s “global businesses” segment fell 18% year over year on an organic basis. Global businesses include Randstad Sourceright (RPO, MSP and total talent solutions), Randstad RiseSmart (outplacement) and twago (a freelance marketplace) as well as the job board Monster. The company reported its outplacement business continued to grow. Randstad also noted that revenue at Monster fell 12% year over year and remained affected by the challenging environment.

Randstad noted softened demand in Germany, with profitability impacted by perm and sickness rate. It also noted perm revenue rose 9% in Italy and there was good profitability in the country. In the UK, Randstad reported tough market conditions remain.

In Asia Pacific, Randstad cited continued revenue growth in Japan, up 4%. However, demand softened in Australia and New Zealand, where revenue fell 9%.

Guidance

Challenging macroeconomic conditions continued into the early part of this year. Randstad forecast first-quarter 2024 gross margin to be modestly lower sequentially because of seasonality.

Share price

Shares in Randstad closed down 1.2% today in Europe to €52.64 (US$56.74). Shares were 15.19% above their 52-week low.