GEE Group (NYSEAMERICAN: JOB) reported fewer job orders combined with layoffs and hiring freezes resulted in revenue falling 22.8% to $29.5 million in its fiscal third quarter ended June 30.

The company cited macroeconomic weakness including the possibility of a recession, persistent inflation, interest rate volatility, layoffs in the information technology sector and geopolitical instability.

“We are in the midst of a very difficult macroeconomic environment that has severely impacted client demand for the use of contingent labor and permanent hires,” Chairman and CEO Derek Dewan said in a press release. “These conditions have negatively impacted the number of job orders received and the number of qualified candidates available to fill orders for placements across substantially all of our lines of business.”

Dewan also noted the US staffing industry, as a whole, has experienced declines in overall volume and financial performance.

“We are hopeful for improvement in the demand environment to begin soon,” he said. “Thus, we are taking actions to prudently manage our company so that we are fully prepared for an eventual recovery. At the same time, we are closely monitoring business activity and remain prepared to move aggressively and take more costs out should present conditions worsen in the near term or promise to continue for an extended period.”

The company provides staffing in IT, finance/accounting, office/clerical, engineering and industrial. It also staffs data entry assistants who specialize in electronic medical records.

The Jacksonville, Florida-based firm on Aug. 5 announced a comprehensive strategic plan aimed at improving growth and profitability amid continued macroeconomic weakness and challenging labor markets.

The plan includes a workforce realignment along with new business initiatives and pricing changes to keep up with inflation. The company expects to reap $3 million in annual cost savings.

GEE is also looking to make acquisitions.

Revenue by segment

Share Price

Shares in GEE Group were down 3.54% to 27.2 cents today as of 10:32 a.m. Eastern time. They were 12.93% above their 52-week low.