Kelly Services moves forward with restructuring
Kelly Services Inc. is moving forward with restructuring plans to eliminate 100 jobs, and 55 workers have already been laid off at the company’s headquarters in Troy.
The staffing services company approved a plan in September to close about 50 branch offices in the U.S. and eliminate several top jobs by the end of the year, according to financial documents filed with the U.S. Securities and Exchange Commission last week.
In the documents, the company says it will incur between $9 million to $10 million in debt in the process by the end of the fourth quarter.
On Wednesday, Kelly Services reported third quarter revenue of $1.4 billion, up about 4 percent from the $1.34 billion in revenue for the third quarter last year. The company also said it had spent about $4 million in restructuring costs during the third quarter.
At the same time, the company reported net earnings of $1.4 million or 0.03 cents per share, down almost 93 percent from $18.8 million or 0.49 cents per share in the third quarter last year.
Through three quarters this year, Kelly Services has seen net earnings plummet to $6.7 million, down 84 percent from $41.7 million for the same time period last year. That’s 0.17 cents per share compared to $1.09 per share in the first three quarters last year.
Altogether it paints a picture of a company struggling to restructure and divest itself of excess in an attempt to become leaner.
Carl T. Camden, president and chief executive officer, described the past year as a “year of aggressive strategic investments at Kelly.”
“We’re seeing early signs that those investments are gaining traction,” he said in a statement.
On Friday, the company announced the departure of Michael S. Webster, the executive vice president and general manager for the Americas. He will retire Dec. 31.