Adecco Slumps 10% After Investor Update Raises Payout Doubts

Adecco Group AG’s stock plummeted 10% after the company presented a new strategy at its capital-markets day that disappointed investors.

While the Zurich-based staffing company confirmed its financial targets and touted the tailwinds of artificial intelligence for its business, analysts and investors questioned the firm’s ability to deliver on future dividend payments while reducing net debt. Adecco confirmed a margin target of earnings before interest, taxes and amortization at 3% to 6% through the cycle.