Adecco mulls cuts as Europe demand weak
Adecco, the world’s largest staffing company, yesterday pledged to keep a firm grip on costs as it grapples with weak demand in parts of Europe.
The Swiss company beat first-quarter profit forecasts as robust results in North America and Germany helped offset weakness in France, its biggest market.
Adecco, which is providing staff for the London Olympics, said it expects Europe to remain tough and is prepared to cut costs.
“For us, more important than growth for the full year is a clear commitment to focus on disciplined pricing and taking out measures on the cost side,” said chief financial officer Dominik de Daniel.
Total sales rose two per cent to €5.035bn (£4.07bn) but were down one per cent excluding acquisitions and currency impact. Revenues in April were also a “touch lower”, de Daniel said.
First-quarter net income rose 12 per cent to €112m, beating the average forecast of €100m.
In France, Adecco’s biggest market, first-quarter revenue fell 10 per cent year-on-year, underperforming the market. Revenue in Iberia and Italy dropped nine per cent and two per cent respectively.