Korn Ferry, a leading consulting company, reported a loss of $1.7 million, or 4 cents per share, for the fiscal second quarter ending on October 31. This is in stark contrast to its earnings of $73.5 million, or $1.38 per share, during the same period last year.
After excluding one-time expenses, Korn Ferry’s earnings amounted to 97 cents per share, surpassing analysts’ expectations of 95 cents per share according to FactSet. However, the company’s revenue declined to $712.4 million from $735.7 million in the previous year’s quarter. Despite this decrease, fee revenue reached $704 million, slightly exceeding analysts’ projections of $687.3 million.
The loss can be attributed to the restructuring actions and job cuts that cost Korn Ferry a total of $52.8 million. In an effort to streamline its operations, the company announced in October that it would eliminate 8% of its workforce.
Furthermore, the decline in fee revenue was due to a decrease in demand for permanent placement talent acquisition offerings. Despite these setbacks, Korn Ferry remains determined to adapt to market conditions and seek new opportunities for growth.
