Executive search firm Heidrick & Struggles International Inc. reported net fourth-quarter revenue fell 12.1 percent year-over-year to $134.9 million as the economic slowdown took hold. The number of executive searches decreased 16.9 percent year-over-year in the fourth quarter, the company said.
“Our fourth-quarter results reflect further deterioration in economies around the world, which resulted in slower hiring decisions in every region and in almost every industry practice,” CEO L. Kevin Kelly said. “We continued to benefit from expense reductions as a result of cost-cutting initiatives adopted earlier in the year, but they could not fully offset the decline in net revenue.”
Heidrick said fourth-quarter U.S. net revenue fell 14.7 percent to $68.2 million.
European fourth-quarter net revenue fell 16.1 percent to $45.3 million. Asia Pacific fourth-quarter net revenue, however, rose 9.2 percent to $21.4 million.
Full-year 2008 net revenue slipped 0.6 percent to $615.9 million compared with the previous year. Net income fell 30.8 percent to $39.1 million.
Heidrick estimated full-year 2009 net revenue of $450 million to $500 million, a decrease of 18.8 to 26.9 percent compared with 2008.
The company said it plans to cut real estate expenses and support costs in 2009 by 30 percent. It earlier announced in January plans to cuts its global workforce by 12 percent.