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Michael Page gross profit slips, cuts headcount

July 07, 2009

Michael Page International PLC, a London-based professional staffing firm with operations in the U.S., reported second-quarter gross profit fell 48.9% year-over-year on a constant currency basis to GBP83.8 million (US$138.4 million). The company said it cut headcount by 429 in the quarter, leaving it with 3,705.

"We anticipate a challenging third quarter as we enter into the seasonally quieter summer period, both in Continental Europe, which was later into the downturn, and in the U.K.," said Chief Executive Steve Ingham.

In the U.S. and Canada, second-quarter gross profit fell by 60% year-over-year on a constant currency basis. The region represents approximately 3.0% of the firm's gross profit.

Michael Page cut U.S. and Canadian headcount by 28 in the quarter, leaving it with 376. The company said market conditions in North America remain weak, but it doesn't plan further significant reductions in headcount.

Michael Page announced the gross profit numbers in a trading update released today.