TrueBlue Inc. (NYSE: TBI), a provider of industrial staffing and recruitment process outsourcing, reported a slower market in its fiscal second quarter ended June 25. Revenue fell 16.5% to $475.6 million at the Tacoma, Washington-based firm. The company also recorded $400,000 for a workforce reduction.

“Our results reflect an environment of softening demand,” TrueBlue CEO Steve Cooper said in a press release. “Given the tight labor market, clients continue to focus on retaining employees, but they are also increasingly focused on reducing costs. As a result, clients are becoming more selective on which jobs they choose to fill.”

Revenue fell across business lines with PeopleScout — which includes the company’s RPO business — seeing revenue decline by 33.2%. TrueBlue reported that reduced client hiring amid uncertainty around workforce needs and growing cost pressure affected PeopleScout. The decline also follows elevated volumes last year.

Meanwhile, second-quarter revenue at PeopleReady, the company’s largest division, fell 13.4% year over year. TrueBlue reported lower volume from existing customers, especially in services, hospitality and retail. PeopleReady provides industrial staffing in the US, Canada and Puerto Rico and includes the JobStack mobile app.

Finally, revenue in TrueBlue’s PeopleManagement division fell 13.2% year over year because of lower customer volume in retail, manufacturing and transportation, including commercial drivers, according to the company. PeopleManagement encompasses TrueBlue’s on-site staffing business and its Centerline Drivers truck driver staffing business.

TrueBlue also reported a net loss in the quarter and a $9.5 million goodwill and intangible asset impairment charge.

Guidance

TrueBlue forecast third-quarter revenue of between $484 million and $509 million, representing a year-over-year decrease of between 16% and 12%. The third quarter has a less challenging year-over-year comparison than the second, the company said.

Gross margin is forecast to be flat to up 40 basis points year over year.

Share price and market cap

Shares in TrueBlue were down 19.76% to $14.68 as of 11:37 a.m. Eastern time; they set a new 52-week low today when they reached $13.52, according to FT.com. The company had a market cap of $552.5 million.