Executive recruiter Korn/Ferry International has reported lower-than-expected third-quarter results which could also extend into Q4.

Revenue for the Los Angeles-based company fell 32% to $144.5m (£105m) from $212.1m during the same quarter a year ago.

During Q3, Korn/Ferry saw a 33.5% decline in the number of executive search engagements opened and a 16.6% fall in the average fee billed per engagement.

Chief financial officer Steve Giusto says sales are expected to come in at around $110m, lower than the current quarter.

Chief executive Gary D Burnison told analysts that many cuts have been in support functions but 38 executive consultants have been cut from the force of 497, a 7.6% reduction.

The company also announced that Giusto will step down due to personal reasons, and that it will take further steps to reduce costs to remain at least cash flow breakeven on an operating basis in Q4.

Paul C Reilly will also be stepping down from his roles as executive chairman and president of Korn/Ferry’s EMEA division on 30 April as part of a planned succession effort.

In April 2007, Korn/Ferry announced the transition of the role of chief executive from Reilly to Gary D Burnison.