Global recruitment company Manpower has bought the world’s largest outplacement firm, Right Management Consultants, in a bid to cash in on mass redundancies caused by increasingly nomadic global corporations.

Manpower’s chief executive Jeff Joerres (pictured) told Recruiter that global companies were much more likely to relocate to different countries in the future to adapt to changing market conditions.

Joerres claimed this trend made mass staff redundancy programmes more common due to projects being relocated abroad, often at short notice.

This trend had in turn boosted demand for outplacement services, which help redundant staff find new work.

He told Recruiter: “Firms are much more mobile and running an international company is more like a logistical operation. Companies may choose to move to another office – or move from one country to another.”

The deal, which involves a share swap scheduled for completion in mid-January, will be worth in the region of $488m (£270m).

Right Management Consultants will merge with Manpower’s existing organisational consulting business, the Empower Group, which is based in London and operates through 19 offices in 11 countries. Joerres claimed the firm had not yet made a decision on where the new look Empower would be based.

Right Management Consultants is based in Philadelphia in the US and offers consultancy services including talent management, leadership development and organisational performance services.

It generated revenues of $344m and net income of $31m through the third quarter of 2003 and is on track to generate total revenues of $450m and a net income of $41m for 2003.

Richard Pinola will continue as chief executive of Right Consultants, reporting to Joerres.

Manpower is listed on the New York Stock Exchange and its share price has increased since the announcement of the deal.

As Recruiter went to press, shares in the company were worth $48.3 each, an increase of nearly $2 compared with a month ago.