StepStone has admitted that it may be forced to look for further funding, after its Q2 results showed a loss of E34.3m. According to some reports, the search may be a short one - an article in the Norwegian daily Finansavisen has claimed that Adecco has bid 545m kroner for the e-cruiter. StepStone made no comment on the report.

Following publication of the Q2 figures, StepStone shares lost 26% of their value on the Oslo bourse, falling to a new all-time low. However, in the wake of the takeover speculation they rallied, gaining 32% in value on 31 July.

The e-cruiter had blamed adverse market conditions for its disappointing results, which included a restructuring charge of E5.9m.

StepStone now has cash reserves of E46.9m - at the current burn rate, enough to last only until the end of the year. ‘Our plans show us getting to cash-positive trading within our current resources,’ director of corporate relations Bob Gregory said. ‘But circumstances could arise where we need more cash. Our main shareholders have said that if that situation arises, they’re right behind us.’

Commenting on the current financial situation, Gregory predicted a rise in revenues thanks to the launch of new products - despite the fact that revenues fell by 6% in Q2. ‘If you look at people like Michael Page, I think a 6% fall isn’t bad,’ he said. ‘Plus our cost base is coming down very fast.’

Having cut its workforce by nearly 200 in Q2, StepStone now plans to further reduce headcount in Q3, from 1,073 to 850. The staff cuts made over the last three months contributed to reduced operating expenses of E47.8m, compared to E53.5m in Q1.

Last month, StepStone parted company with Ireland manager Oisin Mulcahy and several of his colleagues, having decided that the Irish market was not large enough to justify a dedicated management team.

StepStone is also to close branches in countries where it has more than one office.

The Q2 results had been nervously anticipated by shareholders following the resignation of CEO Giles Clarke last month. Many believe that Clarke’s expansion drive overextended StepStone’s resources, and that the urgent need for consolidation was the reason for his departure.