Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Adecco sales top forecast as corporate Europe hires temps

Published May 04, 2023 08:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The logo of Swiss Adecco Group is seen at its headquarters in Zurich, Switzerland October 30, 2018. Picture taken October 30, 2018. REUTERS/Arnd Wiegmann
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

By Andrey Sychev

(Reuters) -Adecco Group beat first-quarter sales expectations on Thursday as companies turned to temporary workers after laying off staff to cope with economic uncertainty.

The group reported an 8% rise in quarterly sales to 5.89 billion euros ($6.53 billion), beating analysts' consensus forecast of 5.83 billion euros.

Sales in its biggest unit Adecco (SIX:ADEN), which offers permanent and flexible staffing services, grew 3% organically and brought in two-thirds of revenues in the quarter, underpinned by resilient demand for temporary workers.

The division's result was especially strong in Europe, thanks to demand from the automotive, logistics, and services sectors. Asia-Pacific saw a record 10% increase, though North America lost 8% due to lower volumes.

"We see a pretty good dynamic overall. Talent scarcity is there to last both for blue-collar and white-collar jobs, driven by demographics and personal choices," Adecco's CEO Denis Machuel said during a conference call.

Adecco shares opened 2.5% higher, before shedding gains to fall 2% by 1215 GMT.

ING analyst Marc Zwartsenburg said the stock's reversal was "more due to fear of further economic weakness, or maybe potentially a recession". "It's not about the results... but about the outlook statements," he said. "There you see room for caution."

In the current quarter, Adecco sees both gross margin and its selling, general and administrative expenses (SG&A) broadly in line with the first quarter, when gross profit margin came in at 21.3% and SG&A at 18.4% of revenues.

The performance of staffing firms such as Adecco and Randstad is seen as a bellwether for broader economic activity as companies' appetite for hiring indicates confidence in the economy. Peer Randstad's shares were down 2% at 1215 GMT, tracking Adecco.

European companies have accelerated hiring to meet rising demand in the region's dominant service sector as the euro zone economy recovers faster than expected.

Sales in Adecco's career transition business, which offers coaching services to employees and organisations, surged by 63% on a reported basis, driven mainly by the U.S. and UK markets, as well as by the tech sector in general.

Asked about the impact of developments in artificial intelligence (AI) on the job markets, Machuel said many blue-collar roles will remain as AI cannot fully replace them, but that employees will have to adapt to possible changes in workflow.

"Some clerk jobs will probably be reduced by AI," the CEO of the world's second-biggest human resources firm by revenue said.

From the company's perspective, AI offered opportunities, Machuel said. "We are quite positive about AI, it can also bring efficiency to our business," he said.

($1 = 0.9021 euros)

Adecco sales top forecast as corporate Europe hires temps

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email