Kelly Services Inc.

Staffing & Employment Services • Industrials • Troy, MI, United States • KELYB (NMS)

Quarter: Q3 2025 Reported: August 7, 2025 Sentiment: Positive

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries. The company operates through four segments: Professional & Industrial; Science, Engineering & Technology; Education; and Outsourcing & Consulting. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. The Science, Engineering & Technology segment offers staffing, outcome-based, and permanent placement services in the areas of science and clinical research, engineering, technology, and telecommunications specialties. The Education segment provides staffing, permanent placement, and executive search services to pre-K-12 school districts and education organizations. The Outsourcing & Consulting segment offers managed service provider, recruitment process outsourcing, payroll process outsourcing, and executive coaching programs to customers on a global basis that includes its RocketPower brand, as well as permanent placement services. The company serves customers in the United States, Canada, Mexico, Puerto Rico, France, Switzerland, Portugal, Russia, Italy, rest of Europe, and the Asia-Pacific region. Kelly Services, Inc. was founded in 1946 and is headquartered in Troy, Michigan.

Analysis Summary

Kelly Services, Inc. (KELYB) announced a significant leadership transition, naming Christopher Layden as its new President and Chief Executive Officer, effective September 2, 2025. Layden, age 43, will succeed Peter Quigley, who is retiring but will serve as a strategic advisor during the transition period and remain on the Board of Directors until May 2026. The Board will expand to nine directors with Layden's appointment.

**Strategic Initiatives and Business Segment Analysis:** The transcript, an 8-K filing, primarily focuses on the executive appointment and does not detail specific strategic initiatives or business segment performance for Q3 2025. However, the appointment of an experienced leader from within the workforce solutions industry (Prolink, ManpowerGroup) suggests a focus on leveraging industry expertise for future strategic direction.

**Management Commentary and Forward Guidance:** The filing does not contain management commentary on Q3 2025 financial performance or forward guidance, as it is an announcement of a leadership change rather than an earnings report.

**Competitive Positioning and Market Trends:** Layden's background in workforce solutions at companies like Prolink and ManpowerGroup indicates a move to strengthen Kelly Services' competitive position by bringing in leadership with deep industry knowledge and experience in staffing, technology, and talent solutions. The focus on securing top talent for the CEO role reflects the competitive nature of the human capital services market.

**Risk Factors and Concerns Raised:** The 8-K filing itself does not explicitly raise specific risk factors or concerns related to the company's operations or market conditions. It is a factual report of a personnel change. However, any leadership transition inherently carries potential risks such as changes in strategic direction, integration challenges for the new CEO, or potential disruption to ongoing initiatives, though the structured transition plan with Quigley as an advisor aims to mitigate these.

**Analyst Q&A Highlights:** As this is an 8-K filing announcing a leadership change, there was no analyst Q&A session detailed in the provided transcript.

Key Highlights

• Christopher Layden appointed President and CEO of Kelly Services, effective September 2, 2025.
• Peter Quigley to retire as CEO but will remain a strategic advisor and board member until May 2026.
• Layden brings nearly two decades of experience from Prolink (COO) and ManpowerGroup.
• New CEO's compensation includes a $1,000,000 annual base salary and a target STIP of 125%.
• Layden will receive a $450,000 cash sign-on bonus and $4,000,000 in restricted stock.
• Board of Directors will expand to nine members with Layden's appointment.