Adecco Posts 2Q Net Loss

Tuesday that it swung to a second-quarter net loss of 147 million Swiss francs, hurt by impairment charges on goodwill and intangible assets. Last year the firm posted a profit of 212 million euros. Adecco said that it doesn't anticipate a material pick-up of business activities and has initiated further restructuring measures although it did note that revenue decline rates appeared to have stabilised over the quarter and into July. Adecco also said that it has made an offer to buy staffing firm Spring Group for 62 pence in cash, or 108 million pounds in order to strengthen its position in the U.K. , MarketWatch reports.

Photo: Adecco Posts 2Q Net Loss

"We were able to take out costs during the second quarter," said Chief Executive Patrick De Maeseneire.

"Meanwhile, pressure on the decline rates has eased over the course of the second quarter. But we really have to wait until September, after the summer break, to have a better view how the market develops," he added , Wall Street Journal reports.

The company, led by Chief Executive Officer Patrick De Maeseneire since June, said today it will offer 62 pence for each share of London-based Spring, valuing the target company at about 108 million pounds ($178 million). Spring Group focuses on recruitment of professional workers for technology companies.

Adecco said will start additional restructuring measures that will lead to charges of about 40 million euros in the second-half. The company has already announced job cuts in France this year , Bloomberg reports.