GEE Group Inc. (NYSEAMERICAN: JOB), a provider of professional staffing, reported macroeconomic weakness weighed on results in its fiscal first quarter ended Dec. 31, 2023. Revenue fell 25.6% year over year.
“We are in the midst of a very difficult macroeconomic environment that has severely impacted client demand,” Chairman and CEO Derek Dewan said in a conference call with investors. “These conditions have negatively impacted the number of job orders and candidates available to fill orders for placements across all of our lines of business.”
Dewan continued, “Likewise, the US staffing industry as a whole has experienced declines in overall volume and financial performance, and the industry outlook is for these conditions to continue during at least the first half of calendar year 2024.”
GEE noted macroeconomic difficulties included persistent inflation, threat of recession, interest rate volatility and layoffs in the IT sector. Amid all this, clients canceled projects and hiring was negatively affected.
“While we are obviously disappointed about our first quarter results, we also are taking aggressive action in prudently managing our businesses and judiciously adding talent internally to be well prepared for an anticipated eventual recovery,” Dewan said.
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Share price
Shares in GEE Group were down 4.75% to 39.5 cents today as of 1:08 p.m. Eastern time. They set a new 52-week low in trading today when they reached 34.5 cents.