Kelly Services Trims Corporate Staff Amid US Hiring Slowdown

Staffing Industry Leader Announces Workforce Reductions

Kelly Services, one of the nation’s leading staffing and recruiting firms, is implementing a targeted reduction of its corporate workforce, according to company statements. The Troy, Michigan-based company confirmed it is cutting approximately 2% of its corporate employees, which sources indicate would affect about 100 workers from its 5,000-person corporate team.

Staffing Industry Leader Announces Workforce Reductions
Strategic Restructuring Under New Leadership
Broader Labor Market Context
Financial Market Response

Strategic Restructuring Under New Leadership

The workforce reduction comes during the early tenure of new CEO Chris Layden, who assumed leadership in September following the retirement of the company‘s former chief executive. Analysts suggest the move represents strategic positioning under fresh leadership, with company representatives stating the changes are designed to meet “the evolving needs of our client portfolio while further streamlining our organizational structure.”

A company spokesperson explained that the restructuring aims to better align resources with client demands in a shifting labor market. Kelly Services, which reportedly placed more than 400,000 workers across various sectors last year, generates significant revenue from placements in science, technology, education, manufacturing, retail, and finance fields.

Broader Labor Market Context

The staff reductions coincide with emerging signs of cooling in the US labor market. While overall layoff numbers remain relatively low nationwide, reports indicate many job seekers are experiencing increased difficulty securing positions, particularly in corporate environments.

According to analysis from staffing and coaching firm Challenger, Gray & Christmas, US employers’ hiring plans had reached their lowest year-to-date level since 2009 as of September. This trend suggests broader market pressures that may be affecting staffing industry dynamics.

Financial Market Response

Financial markets showed minimal reaction to the announcement, with Kelly Services shares reportedly declining less than 1% in Wednesday afternoon trading following the news. The company, which reportedly generated $4.3 billion in revenue in 2024, maintains its position as a significant player in the staffing industry despite the workforce adjustments.

Industry observers note that staffing firms often serve as early indicators of labor market trends, making Kelly’s restructuring particularly noteworthy amid current economic conditions. The company’s strategic moves will likely be monitored as indicators of broader employment patterns in the coming months.

For additional context on workforce reductions in the corporate sector, see information about layoff trends.