Staffing 360 Solutions’ revenue down 4% in Q3
NEW YORK, UNITED STATES — Staffing 360 Solutions reported a steep drop in third-quarter profitability as economic uncertainty weighed on demand for its temporary staffing services.
The company said its revenue declined 4% year-on-year to $63.5 million, while its net profit swung to a $4.3 million loss compared to a $1 million profit last year.
“Our third quarter results reflect the continued uncertainty that has been characteristic of the employment sector, with clients remaining cautious about their hiring needs and the economy,” explained Staffing 360 Solutions Chairman, CEO, and President Brendan Flood.
“As a result, we are facing many of the same challenges as other staffing firms, especially in the area of light industrial.”
Flood said demand for short-term warehouse and factory workers also softened noticeably. At the same time, the company has faced cost pressures from rising workers compensation expenses. This combination of weaker revenue and higher costs led to the profit decline versus last year’s third quarter.
Meanwhile, Staffing 360’s revenue rose 8% for the first nine months of 2023 to $188.7 million, aided by an acquisition. But steeper operating costs have led to a larger $10 million net loss.
Staffing 360’s weak quarter signals that uncertainty about economic growth is weighing on employer’s hiring plans.
However, the firm remains upbeat, expecting its revenue to surpass $250 million for the 2023 fiscal year.
