Korn/Ferry International Inc. said a global slowdown in hiring caused its net income to drop 20 percent in its second quarter, prompting the executive recruiter to cut 400 jobs.
Los Angeles-based Korn/Ferry reported net income of $13.6 million (30 cents a share) for the quarter ended Oct. 31, compared with net income of $17.1 million (37 cents) a year ago. Fee revenue was down 3.4 percent to $189 million.
Los Angeles-based Korn/Ferry said the impact of the economic turndown on its executive recruiting business has been sharpest over the last five weeks, with the Asia-Pacific and Latin America markets the worst performers.
"The climate has grown increasingly challenging for our clients," said Chief Executive Gary Burnison in a statement. "We plan to maneuver through this volatility seizing opportunity and taking market share."
Korn/Ferry shares were down 32 cents, or 3 percent, to $11.74 in morning trading on the New York Stock Exchange.
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