Executive search and RPO revenue fell at Korn Ferry (NYSE: KFY), which yesterday reported earnings for its fiscal second quarter ended 31 October. Total revenue at the US-based firm fell 3.3% year over year. The decline was 5% in constant currency. Net income also shrunk as the company took a $63.5 million workforce restructuring charge.

Still, Korn Ferry noted revenue in its digital business hit a record high in constant currency and cited new RPO wins.

“Despite a persistent, uneven economic environment, earnings and profitability held steady sequentially as we delivered $99 million of adjusted EBITDA at a 14% margin,” CEO Gary Burnison said.

Revenue by business line

Consulting revenue at Korn Ferry rose 2.7%. The company cited growth in the business’ organizational strategy and assessment and succession solutions.

Digital revenue rose 2.9%, driven by increases in its total reward, organizational strategy and sales effectiveness offerings.

Executive search revenue fell 7.0%, with the company citing the impact from the “uncertain and challenging economic environment.”

Professional search and interim revenue rose 2.7% with help from acquired revenue.

RPO revenue declined 18.3% amid reduced demand brought on by the uncertain economic environment.

Looking ahead Korn Ferry forecast third-quarter revenue to be down between 2.3% and 5.3% year over year.

Korn Ferry shares closed yesterday at $51.70, down 3.13% on the day and 16.31% above the 52 week low of $44.45 set on 24 October 2023. The company has a market cap of $2.72 billion.