Net staffing sales at Volt Information Sciences Inc. (NYSE: VOL) fell 11.8% year-over-year to $425.0 million in the company's fiscal first quarter ended Feb. 1. The New York-based firm said the economic downturn hurt revenue with customers laying off workers and imposing hiring freezes.

First-quarter revenue fell 7% in the technical resources division — which provides information technology, engineering/design and life sciences staffing. In addition, Volt's administrative and industrial staffing division posted a 23% decrease in revenue. It provides office/clerical, industrial, finance/accounting and call center staffing.

Volt's staffing business registered an operating loss of $10.6 million in the first quarter compared with an operating profit of $5.5 million in the same period last year. The slow economy along with reduced gross margins from lower markups and higher workers' comp costs hurt operating profit, the company reported.

Volt said staffing operations also recorded a $2.2 million restructuring charge as the company cut jobs and closed a location. And it plans more office consolidations for its second quarter with a restructuring charge of $4.4 million.

Total first-quarter revenue at the company, which also provides technology, printing and other services, fell 14.0% year-over-year to $499.7 million in the first quarter. Volt posted a first-quarter net loss of $13.1 million compared to a net loss of $13.2 million in the same period in the previous year.