Randstad, the largest global staffing firm, reported second-quarter revenue fell 8% on an organic basis to 6.08 billion euros (US$6.52 billion). Macroeconomic conditions are weighing on the market.

Inflation in both the US and Europe — along with slower economic growth and interest rate uncertainty — have altered clients’ spending plans, Randstad CEO Sander van’t Noordende said in a phone interview with Bloomberg.

“Businesses are looking to see what these governments are going to do” after recent elections in Europe, van’t Noordende said, adding that he also sees subdued hiring levels ahead of the November election in the US.

Tighter hiring budgets have also meant fewer vacancies and longer times to hire, Bloomberg reported. Businesses are becoming more selective in their staffing choices, and candidates are also less excited to change jobs in such an environment.

Still, Randstad reported it remains focused on reducing costs and has increased its commercial activities.

It also recently announced its May 2024 acquisition of Torc, a digital platform that has more than 25,000 digital workers enrolled worldwide, with a specific current emphasis on Latin America, the US and India. Torc, with its AI-driven platform, enables skill-based matching to connect digital talent to clients globally.

Randstad – Q2 2024

Revenue by Geography

Percentage changes indicated below are on an organic basis unless otherwise noted.

• In North America, revenue was down 13% year over year in the second quarter. Revenue for the combined US businesses was down 13%. US operational talent solutions was down 7%. US professional talent solutions was down 22%. US digital talent solutions was down 16%, while US enterprise talent solutions was down 16%. In Canada, revenue was down 14% over the year.
• In the Netherlands, revenue was down 9%. The group’s operational talent solutions was down 10% year over year, while professional talent solutions was up 1%.
• In Germany, revenue was down 16%. The operational talent solutions was down 17%, while professional talent solutions was down 15%. In Belgium and Luxembourg, revenue was flat year over year. The operational talent solutions was flat year over year, while the professional talent solutions was up 3%.
• Across other Northern European countries, revenue per working day was down 13%. Revenue in Poland was flat year over year. In the Nordics, revenue was down 26%, while in Switzerland, revenue was down 12%.
• In France, revenue was down 7%. Operational talent solutions was down 8%, while professional talent solutions was down 2%. Revenue in Italy was up 3%. Operational talent solutions was up 4%.
• In Iberia, revenue per working day was up 7%. Operational talent solutions was up 7% year over year. Spain was up 10%, while in Portugal revenue was down 5%.
• Across other Southern European countries, the UK and Latin America, revenue per working day was down 5%. In the UK, revenue was down 7%, while in Latin America revenue was flat.
• Total revenue in the Asia Pacific region was down 8% organically year over year. In Japan, revenue was up 2%. Japan operational talent solutions was down 1%, while professional talent solutions was up 2%. Revenue in Australia/New Zealand was down 17%, while the business in India was up 2%.

Perm Fees

Perm fees decreased by 18% year over year on an organic basis. Total revenue for permanent placements amounted to €129 million (US$138.2 million) in the second quarter. RPO fees decreased by 19% year over year (Q1 2024: down 20%). Revenue from recruitment process outsourcing amounted to €79 million (US$84.6 million) in the second quarter. Perm and RPO fees made up 17% of gross profit.

Monster

In July 2024, Randstad announced it has reached an agreement to form a joint venture combining its job board business, Monster, with CareerBuilder, a portfolio company of funds managed by affiliates of Apollo.

Under the terms of the agreement, existing CareerBuilder investors, including Apollo Funds, will collectively hold a controlling interest in the joint venture, and Randstad will hold a minority equity interest. The transaction is expected to be completed in the third quarter of 2024.

Revenue by Specialization

Guidance

Randstad reported volumes in the first week of July were stable compared to the second quarter, and the company expects to benefit from easier comparables as it enters the third quarter.

It also noted third-quarter gross margin is expected to be modestly higher compared to the second quarter.

Share price

Shares in Randstad close up 1.79% today in Europe to 45.51 euros (US$49.55); they were 11.0% above their 52-week low.

*Organic change is measured excluding the impact of currencies, acquisitions, disposals and reclassifications. For revenue, the organic change has been adjusted for the number of working days.

**Underlying gross profit is adjusted for integration costs and one-offs. The company says it eliminates the impact of restructuring costs, integration and M&A costs related to acquisitions and other exceptional items.

(Bloomberg contributed to this report.)