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ManpowerGroup Reports Q1 Growth and Unveils $200 Million Cost Overhaul

The transformation targets higher margins through AI tools on a single platform with savings building through 2028.

Overview

  • ManpowerGroup posted first‑quarter revenue of $4.5 billion with 3% organic growth in constant currency, a 1.4% adjusted EBITDA margin, and adjusted EPS of $0.51.
  • Management guided second‑quarter revenue growth of 1% to 5% and projected adjusted EPS of $0.91 to $1.10.
  • The company launched a global program seeking $200 million in permanent annual savings by 2028, led by a new Chief Enterprise Transformation Officer and a redesign of front and back offices.
  • About 90% of the business now runs on the PowerSuite system, and AI pilots drove about $200 million in French sales and cut screening time 67% across 25,000 interviews with 87% candidate satisfaction.
  • Revenue trends looked steadier in key markets with a pickup in European manufacturing and solid results in France, the United States and Italy, while recruitment process outsourcing remained weak; management also flagged negative free cash flow in the first half with a rebound in the second and estimated $10 million to $15 million in quarterly restructuring charges as it monitors Middle East risks.