Second-quarter revenue fell 29.1% year over year at Kelly Services Inc. (NASD: KELYA) to $1.03 billion. On a constant currency basis, revenue fell 24%.

The Troy MI-based staffing firm reported U.S. second-quarter revenue fell 24.5% year over year to $633.3 million. Canadian revenue fell 33.1% (down 22.6% on a constant currency basis) to $42.6 million.

In Europe, Kelly's revenue declined 38.7% (27.1% in constant currency) to $248.6 million.

Second-quarter revenue in Kelly's Americas commercial segment fell 28.0% to $473.0 million, and revenue in its Americas professional and technical segment declined 20.7% to $194.8 million. The Americas includes the U.S., Canada, Mexico and Puerto Rico.

Gross margin narrowed to 16.7% in the second quarter from 17.7% in the year-ago quarter.

Kelly posted a second-quarter net loss of $66.0 million compared with net income of $10.5 million in the second quarter of last year.

The company reported an impairment charge of $52.6 million for goodwill related to its Americas commercial, Asia Pacific commercial and European professional and technical segments as well as intangibles related to its Japanese operations. It also recorded a $2.4 million restructuring charge over the closure of 41 offices in the United Kingdom.

Including U.K. operations, Kelly cut the number of full-time employees by 1,300 people in the last 12 months, according to a conference call with analysts.

Kelly Services Inc. (NASD: KELYA)
For the second quarter ended June 28, 2009, compared with the same period in 2008.
Revenue: $1.03 billion, -29.1%
Net loss: $66.0 million vs. net income of $10.5 million