Korn/Ferry reduces losses

Paul Reilly, chairman and CEO, said: "We believe the global demand for (executive) search has stabilised, but the business environment remains challenging. North America was in line with expectations this past quarter, while Europe performed better than expected."

Despite increases in executive search in Europe, overall revenue of almost $84m was down 20% from the first quarter of last year. In executive recruitment alone, revenue was $74.5m, down 18%.

In line with other global recruitment firms, Korn/Ferry has spent the last 18 months paring costs and streamlining its operations in order to survive flat recruitment markets.

The results showed that its compensation and benefits expense was $59.5m in the first quarter compared to $75.2m the year before. A restructuring of its mid-market internet recruitment arm, Futurestep, in Europe was partly responsible for the reduced costs.

The firm said it laid off 870 employees worldwide in the year to July 31, 2002.

Korn/Ferry plans to take second-quarter charges of $8m-$10m to streamline its corporate infrastructure and improve efficiency.