Japanese staffing giant Recruit Holdings Co. Ltd., updated portions of its guidance for its fiscal year ending 31 March 2023. The updated guidance takes account of recently announced layoffs at Indeed and Glassdoor.

While revenue guidance for the full fiscal year is unchanged at JPY 3.43 trillion (USD 26.33 billion), the Tokyo-based company lowered its forecast for basic earnings per share to JPY 169.50 (USD 1.30) from JPY 181.69 (USD 1.39).

The company also announced new guidance for operating income, which is forecast to fall 10.0% year over year to JPY 341.00 billion (USD 2.61 billion). It hadn’t previously announced guidance for operating income.

Recruit forecast profit before tax of JPY 362.00 billion (USD 2.77 billion) for the full fiscal year, down 5.4% year over year. Profit attributable to owners of the parent company is forecast to fall 9.0% to JPY 270.0 billion (USD 2.07 billion).

There is no change in the company's FY2022 consolidated guidance for adjusted EBITDA, and year-end dividend forecast.

The company also announced it expects to record a restructuring charge of JPY 18.0 billion (USD 138.2 million) in its fiscal fourth quarter related to severance benefits and associated costs. In addition, the company expects to record a one-time charge of approximately JPY 12.0 billion (USD 92.1 million) for impairment losses in relation to software in its “matching and solutions” segment (non-staffing publishing operations and some recruiting operations) and in its staffing segment.

For the fiscal year ending 31 March 2024 (FY 2023), the company expects the effect of the workforce reduction in the HR Technology segment to be approximately USD 500 million US dollars, equal to approximately JPY 63.5 billion (USD 487.6 million) in annualised cost savings. The effects from other cost control measures are being assessed.

On Wednesday, Indeed, part of Recruit’s HR Technology segment, announced it was laying off 2,200 workers, or 15% of its global workforce. It reported that the job market is cooling. Glassdoor also part of the HR Technology segment, announced it was laying off 140 people, or approximately 15% of its workforce.Despite the profit warning, Recruit shares closed yesterday at JPY 3,660 (USD 28.10), up 4.78% on the day. The company has a market cap of JPY 6.32 trillion (USD 48.52 billion).