Recruiter.com Group, Inc. (NASDAQ:RCRT) has announced the next step in its strategic plan to increase shareholder value, including reducing its operating expenses.
Recruiter.com CEO Evan Sohn said that throughout the past two years, the New York-based company has achieved strong growth, driven by the product market fit for its on-demand talent acquisition solutions.
"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," Sohn said in a statement.
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"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," he said.
The strategic plan focuses on its most 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, according to the company.
The company said it will reduce approximately 30% of staff, and that key executive officers, including the CEO and COO, will take a voluntary reduction of 20% in cash compensation through to the end of the year.
These changes should realize cost savings of approximately US$250,000 a month, the company said.
"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," said Sohn.
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