Financial Data and Key Metrics Changes - In the first quarter, revenue was $4.1 billion, down 5% year-over-year in constant currency [12] - Reported EBITDA for the quarter was $36 million, while adjusted EBITDA was $52 million, representing a decrease of 32% in constant currency year-over-year [12][19] - Adjusted earnings per share decreased 51% year-over-year in constant currency, with reported EPS at $0.12 and adjusted EPS at $0.44 [13][20] Business Line Data and Key Metrics Changes - On an organic constant currency basis, the Manpower brand declined 2%, the Experience brand declined by 5%, and the Talent Solutions brand declined by 2% [22] - The MSP business recorded a strong double-digit revenue increase, while the RPO business experienced a slight year-over-year revenue decrease [22] - Gross profit margin was 17.1%, with staffing margin contributing to a 10 basis point reduction due to mixed shifts and lower bench utilization [23] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 5% year-over-year increase on a constant currency basis [28] - Southern Europe revenue was $1.8 billion, representing a 5% decrease in constant currency [33] - The Asia Pacific Middle East segment saw revenues of $476 million, representing a 7% increase in organic constant currency [42] Company Strategy and Development Direction - The company is focused on diversifying, digitizing, and innovating, with plans to showcase technology advancements at VivaTech in Paris [51] - There is an emphasis on building tailored solutions with a focus on candidate experience and data privacy [52] - The company aims to manage costs effectively while driving profitable revenue growth through organizational alignment and centralization of functions [54] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach among clients due to recent trade policy announcements, leading to a wait-and-see attitude [9][10] - The company expects employers to continue cautiously hiring select talent, particularly those with in-demand skills [16] - Future guidance anticipates continued challenges in Europe and North America, with a forecasted EPS range of $0.65 to $0.75 for the second quarter [46][47] Other Important Information - Free cash flow represented an outflow of $167 million compared to an inflow of $104 million in the prior year, influenced by timing of payables [43] - The company ended the quarter with cash of $395 million and total debt of $1.07 billion, resulting in a net debt of $677 million [45] Q&A Session Summary Question: Impact of pending tariffs on future performance - Management indicated that a resolution of U.S. tariffs could lead to a quick turnaround in employer confidence and demand [60][65] Question: Signs of layoffs and hiring freezes - Management noted that while there is a pullback on temporary staffing, there are no significant layoffs observed, with demand for specialized skills remaining strong [69][71] Question: Client mindset regarding tariff policy - Clients are adopting a wait-and-see approach, with many believing that current trade policies are part of a negotiation tactic [84][86] Question: Restructuring actions in Northern Europe - Management discussed ongoing restructuring efforts in Northern Europe, with a focus on achieving break-even and profitability [92][96] Question: Permanent recruitment trends - Management highlighted that permanent recruitment weakness is primarily in lower-skilled positions, while specialized skills remain in demand [102][124] Question: Cash flow expectations - Management expressed confidence that cash flow dynamics would improve in the second half of the year, following typical seasonal patterns [127][128]