Troubled Adecco in management shake-up

Adecco overhauled its senior management today in a bid to restore credibility with investors as the temporary-employment group…

Adecco overhauled its senior management today in a bid to restore credibility with investors as the temporary-employment group unveiled widespread control problems at its North America staffing unit.

But the embattled firm declined to say how the problems would affect its bottom line and did not give a time for the release of 2003 results while investigations into its accounting practices - including one by the US Securities and Exchange Commission - continued.

Adecco said its finance chief had quit and the group's chairman moved to take executive control and help resolve accounting issues that included problems with IT system security, payroll bank accounts, account receivables, revenue recognition, billing errors and the lack of segregation of duties in branches.

The stock opened some 7 per cent lower after the statement, the first official word from Adecco since it issued a statement on Monday warning of internal weaknesses in North America and possible accounting issues elsewhere.

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That statement sent its shares reeling on fears it might unveil a scandal similar to those at Enron, Ahold and Parmalat.