Adecco reports 83 pct drop in 1Q profit

Employment agency Adecco SA reported an 83 percent drop in first quarter profit Wednesday as the global downturn slowed demand for both temporary and permanent employees.

Net profit attributable to shareholders was euro23 million ($31 million) compared to euro137 million the same period last year.

All parts of the business weakened, with revenues dropping 32 percent to euro1.1 billion in its core market in France. The U.S., Canada, Germany, Britain and the Nordic region saw a similar decline in revenue, while the Iberian peninsula and Italy fared even worse. Only emerging markets grew, by 3 percent.

Adecco said it placed 38 percent fewer industrial workers and 21 percent fewer office workers during the quarter.

In order to reduce costs, the company slashed 3,000 full-time jobs during the quarter and plans to cut its workforce further this year.

"The business environment in the first quarter of 2009 was exceptionally difficult and the near future continues to look challenging," the company said.

Adecco's share price closed up 1.86 percent at 47.06 francs ($41.67) on the Zurich exchange.