ZUERICH: Adecco, the world's biggest temporary staffing agency, said net profit slumped 83 percent in the first quarter, as revenues declined by double-digits in western Europe and the United States. Skip related content

Net profit reached 23 million euros (30 million dollars) during the first quarter of this year compared to 137 million euros during the first three months of 2008.

The group, which is a barometer for the temporary staffing industry, warned that the challenging environment is expected to continue in the coming months and that it is still cutting costs to deal with the downturn.

"Near term, management expects no reversal of current conditions and sees no clear signs of stabilisation yet," Adecco said in a statement.

Revenues in France, the group's largest market, declined 32 percent during the first quarter year-on-year while in Germany, the fall reached the same level.

Revenues tumbled 18 percent in the United States and Canada and 42 percent in Britain and Ireland.

Adecco said that "weak permanent placement business" was weighing on results in Britain and Ireland.

By sectors, industrial showed the biggest decline in hiring, as revenues dropped 38 percent. This is followed by finance and legal which slid 23 percent, and engineering and technical which dropped 21 percent.