Korn/Ferry reports second quarter loss

Revenue in the quarter ended 31 October fell by 37% to $109m. The company said the decline was due to the weak global economy and affected all business lines. It predicted a further fall in the third quarter.

In executive search, revenue fell 36% to $96m in the second quarter, primarily due to a decrease in assignments, the company said. This led to an operating loss of $15m.

At Futurestep, the Korn/Ferry arm that describes itself as a technology-enhanced middle-management recruitment company, revenue in the second quarter fell by 42% to $12m. Despite the decline, the operating loss fell by 58% to $4.1m, but the company says it is &quotunable to provide guidance on when Futurestep will achieve its first quarter of profitability.&quot

In August, Korn/Ferry announced business restructuring plans designed to cut costs. More recently it has embarked on internal management reshuffles and a re-thinking of strategic direction.