Reply #59: Layoffs, revenue range misses to hit Spherion

[UpInArms]

http://southflorida.bizjournals.com/southflorida/stories/2005/04/11/daily42.html?jst=b_ln_hl

Spherion has lowered its first quarter revenue guidance and disclosed a plan to eliminate certain positions. While the staffing company has filed no formal layoff plan with the state, media reports suggest that, of the 85 workers Spherion will dismiss, 17 are in South Florida.

The main reason for the cutbacks is Spherion (NYSE: SFN) has lost a contract, commonly believed to be with IBM Corp. Though it disclosed its plans in a Securities and Exchange Commission filing Wednesday, Spherion did not give the name of its departed client.

The Fort Lauderdale-based company also did not give a specific dollar amount for the change in its first quarter revenue. Whereas it had expected that number to be $510 million to $530 million, Spherion now said it expects revenue "slightly below" that estimate.

The company also said it anticipates earnings from continuing operations to be reduced by 2 cents a share for certain restructuring costs, or at the low end of its range.

Spherion also said its cutback plan, approved April 8, will cost it a $2 million restructuring charge in the first period. The company noted the charge, which is for severance costs, will result in about $2 million in cash expenditures to be incurred in fiscal 2005.

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