Reorganization drives an approximate 30% reduction in Operating Expenses through staffing and service optimizations
NEW YORK, NY / ACCESSWIRE / October 25, 2022 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) ("Recruiter.com"), an on-demand recruiting platform, today announced the next step in its strategic plan to increase shareholder value, including operating expense reductions.
"Throughout the past two years, we achieved strong growth, driven by the product market fit for our on-demand talent acquisition solutions," said Evan Sohn, CEO of Recruiter.com. "We are ready to build upon our success and embark on the next phase of profitability-focused growth. We believe that Recruiter.com has a unique opportunity to capitalize on the demand for recruiters and talent acquisition professionals by creating compelling and innovative products and services."
"To capitalize on our strengths in a rapidly changing environment, we are focusing on our segments with the highest operating margins and client demand. We are implementing several cost reductions to accelerate profitability and concentrate efforts on our strongest growth drivers."
The corporate reorganization focuses the company on its most unique and profitable segment, Recruiters on Demand, which offers freelance recruiters and talent acquisition professionals on a project basis and reduces reliance on less strategic and lower margin revenue. Changes include:
- Immediate cost reductions, including an approximately 30% reduction in overall headcount.
- Certain key executive officers, including the CEO and COO, will take a voluntary reduction of 20% in cash compensation through the end of the year.
- Realized cost savings are approximately $250,000 / month.
"We plan to enter the new year focused on delivering amazing results for our clients and driving toward self-sufficiency. Over the past two years, we have developed high-value relationships with exceptional clients and are in a great position to grow. We are excited to re-align our company and client experience around our most successful work."
About Recruiter.com Group, Inc.
Recruiter.com is an on-demand recruiting platform providing flexible talent acquisition solutions that scale from startups to the Fortune 100. With an on-tap network of thousands of recruiting professionals, advanced artificial intelligence sourcing software, and recruitment marketing automation, Recruiter.com helps businesses solve today's complex hiring challenges.
For investor information, visit https://investors.recruiter.com
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Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "predict" "forecast" "believe," "may," "estimate," "continue," "anticipates," "intend," "should," "plan," "could," "target," "potential," "is likely," "will," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements primarily on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include continued demand for professional hiring, the accuracy of the Recruiter Index® survey, the impact of the COVID-19 pandemic on the job market and the economy as virus levels are again rising in many states, and the Risk Factors contained within our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2021. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statements publicly, whether as a result of new information, future developments, or otherwise, except as may be required by law.
SOURCE: Recruiter.com Group, Inc.