10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-50129

HUDSON GLOBAL, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	59-3547281
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

1325 Avenue of the Americas, New York, NY 10019

(Address of principal executive offices) (Zip Code)

(212) 351-7300

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   x    No   o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  x     No  o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer", "accelerated filer", and "smaller reporting company" in Rule 12b-2 of the Exchange Act. 

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o	Smaller reporting company	o

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding on March 31, 2016
Common Stock - $0.001 par value	34,245,784

HUDSON GLOBAL, INC.

INDEX

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statement of Operations - Three Months Ended March 31, 2016 and 2015	1
	Condensed Consolidated Statement of Other Comprehensive Income (Loss) - Three Months Ended March 31, 2016 and 2015	2
	Condensed Consolidated Balance Sheets – March 31, 2016 and December 31, 2015	3
	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2016 and 2015	4
	Condensed Consolidated Statement of Stockholders’ Equity – Three Months Ended March 31, 2016	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	44
Item 4.	Controls and Procedures	44
	PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	45
	Signatures	46
	Exhibit Index	47

PART I – FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

HUDSON GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended March 31,
	2016			2015
Revenue	$	101,227		$	124,317
Direct costs	59,965			76,413
Gross margin	41,262			47,904
Operating expenses:
Selling, general and administrative expenses	43,642			52,166
Depreciation and amortization	688			1,111
Business reorganization expenses	637			1,343
Operating income (loss)	(3,705		)	(6,716		)
Non-operating income (expense):
Interest income (expense), net	(54		)	(80		)
Other income (expense), net	(137		)	13
Income (loss) from continuing operations before provision for income taxes	(3,896		)	(6,783		)
Provision for (benefit from) income taxes from continuing operations	(326		)	(129		)
Income (loss) from continuing operations	(3,570		)	(6,654		)
Income (loss) from discontinued operations, net of income taxes	83			(184		)
Net income (loss)	$	(3,487	)	$	(6,838	)
Basic and diluted earnings (loss) per share:
Basic and diluted earnings (loss) per share from continuing operations	$	(0.10	)	$	(0.20	)
Basic and diluted earnings (loss) per share from discontinued operations	—			(0.01		)
Basic and diluted earnings (loss) per share	$	(0.10	)	$	(0.21	)
Weighted-average shares outstanding:
Basic	34,631			33,053
Diluted	34,631			33,053

See accompanying notes to condensed consolidated financial statements.

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HUDSON GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share amounts)

(unaudited)

	Three Months Ended March 31,
	2016			2015
Net income (loss)	$	(3,487	)	$	(6,838	)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of income taxes	668			(2,763		)
Pension liability adjustment	2			(17		)
Total other comprehensive income (loss), net of income taxes	670			(2,780		)
Comprehensive income (loss)	$	(2,817	)	$	(9,618	)

See accompanying notes to condensed consolidated financial statements.

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HUDSON GLOBAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

(unaudited)

	March 31, 2016			December 31, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	31,927		$	37,663
Accounts receivable, less allowance for doubtful accounts of $856 and $860 respectively	64,208			62,420
Prepaid and other	6,154			5,979
Current assets of discontinued operations	38			81
Total current assets	102,327			106,143
Property and equipment, net	7,912			7,928
Deferred tax assets, non-current	7,552			6,724
Other assets, non-current	4,047			4,154
Total assets	$	121,838		$	124,949
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,094		$	5,184
Accrued expenses and other current liabilities	39,849			40,344
Short-term borrowings	5,770			2,368
Accrued business reorganization expenses	2,301			2,252
Current liabilities of discontinued operations	970			1,443
Total current liabilities	53,984			51,591
Deferred rent and tenant improvement contributions	4,042			4,244
Income tax payable, non-current	2,316			2,279
Other non-current liabilities	5,459			5,655
Total liabilities	65,801			63,769
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding	—			—
Common stock, $0.001 par value, 100,000 shares authorized; issued 35,260 and 35,260 shares, respectively	34			34
Additional paid-in capital	481,188			480,816
Accumulated deficit	(433,487		)	(428,287		)
Accumulated other comprehensive income, net of applicable tax	10,962			10,292
Treasury stock, 1,015 and 646 shares, respectively, at cost	(2,660		)	(1,675		)
Total stockholders' equity	56,037			61,180
Total liabilities and stockholders' equity	$	121,838		$	124,949

See accompanying notes to condensed consolidated financial statements.

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HUDSON GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended March 31,
	2016			2015
Cash flows from operating activities:
Net income (loss)	$	(3,487	)	$	(6,838	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	688			1,111
Provision for (recovery of) doubtful accounts	32			75
Provision for (benefit from) deferred income taxes	(672		)	(346		)
Stock-based compensation	372			533
Other, net	187			36
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(758		)	(9,760		)
Decrease (increase) in prepaid and other assets	59			1,781
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(1,586		)	(4,718		)
Increase (decrease) in accrued business reorganization expenses	(657		)	(241		)
Net cash used in operating activities	(5,822		)	(18,367		)
Cash flows from investing activities:
Capital expenditures	(643		)	(695		)
Proceeds from sale of assets	13			—
Net cash provided by (used in) investing activities	(630		)	(695		)
Cash flows from financing activities:
Borrowings under credit agreements	26,882			18,625
Repayments under credit agreements	(23,758		)	(18,555		)
Repayment of capital lease obligations	(21		)	(5		)
Dividend payment	(1,713		)	—
Purchase of treasury stock	(985		)	—
Purchase of restricted stock from employees	—			(34		)
Net cash provided by (used in) financing activities	405			31
Effect of exchange rates on cash and cash equivalents	311			(1,064		)
Net increase (decrease) in cash and cash equivalents	(5,736		)	(20,095		)
Cash and cash equivalents, beginning of the period	37,663			33,989
Cash and cash equivalents, end of the period	$	31,927		$	13,894
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	58		$	64
Net cash payments (refunds) during the period for income taxes	$	44		$	(167	)

See accompanying notes to condensed consolidated financial statements.

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HUDSON GLOBAL, INC.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

	Common stock				Additional paid-in capital		Accumulated deficit			Accumulated other comprehensive income (loss)		Treasury stock			Total
	Shares		Value
Balance at December 31, 2015	34,611		$	34	$	480,816	$	(428,287	)	$	10,292	$	(1,675	)	$	61,180
Net income (loss)	—		—		—		(3,487		)	—		—			(3,487		)
Other comprehensive income (loss), currency translation adjustments, net of applicable tax	—		—		—		—			668		—			668
Other comprehensive income (loss), pension liability adjustment	—		—		—		—			2		—			2
Cash dividend ($0.05 per share)	—		—		—		(1,713		)	—		—			(1,713		)
Purchase of treasury stock	(366	)	—		—		—			—		(985		)	(985		)
Stock-based compensation	—				372		—			—		—			372
Balance at March 31, 2016	34,245		$	34	$	481,188	$	(433,487	)	$	10,962	$	(2,660	)	$	56,037

See accompanying notes to condensed consolidated financial statements.

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 1 – BASIS OF PRESENTATION

These interim unaudited condensed consolidated financial statements have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and related notes of Hudson Global, Inc. and its subsidiaries (the "Company") filed in its Annual Report on Form 10-K for the year ended December 31, 2015.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of operating revenues and expenses. These estimates are based on management’s knowledge and judgments. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows at the dates and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All significant intra-entity balances and transactions between and among the Company and its subsidiaries have been eliminated in consolidation.

NOTE 2 – DESCRIPTION OF BUSINESS

The Company is comprised of the operations, assets and liabilities of the three Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe ("Hudson regional businesses" or "Hudson"). The Company provides specialized professional-level recruitment and related talent solutions. The Company’s core service offerings include Permanent Recruitment, Temporary Contracting, Recruitment Process Outsourcing ("RPO") and Talent Management Solutions.

The Company operates in 12 countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. See Note 18 for further details regarding the reportable segments.

Corporate expenses are reported separately from the reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, tax, marketing, information technology and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them and have been allocated to the segments as management service fees and are included in the segments’ non-operating other income (expense).

The Company’s core service offerings include those services described below.

Permanent Recruitment: Offered on both a retained and contingent basis, Hudson’s Permanent Recruitment services leverage its consultants, psychologists and other professionals in the development and delivery of its proprietary methods to identify, select and engage the best-fit talent for critical client roles.

Temporary Contracting: In Temporary Contracting, Hudson provides a range of project management, interim management and professional contract staffing services. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson-employed professionals - either individually or as a team - are placed with client organizations for a defined period of time based on a client's specific business need.

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

RPO: Hudson RPO delivers both permanent recruitment and temporary contracting outsourced recruitment solutions tailored to the individual needs of primarily mid-to-large-cap multinational companies. Hudson RPO's delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients' ongoing business needs. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting.

Talent Management Solutions: Featuring embedded proprietary talent assessment and selection methodologies, Hudson’s Talent Management capability encompasses services such as talent assessment (utilizing a variety of competency, attitude and experiential testing), interview training, executive coaching, employee development and outplacement.

NOTE 3 – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In March 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-09, "Stock Compensation (Topic 718)" ("ASU 2016-09"),  which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 will be effective for the fiscal year beginning after December 15, 2016, including interim periods within that year. Early adoption is permitted. The Company is currently evaluating the impact to its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing standards for lease accounting. This new standard requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements including the amounts, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 will be effective for the Company on January 1, 2019 and will require modified retrospective application as of the beginning of the earliest year presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact to its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB amended the effective date of this ASU to fiscal years beginning after December 15, 2017 and early adoption is permitted only for fiscal years beginning after December 15, 2016.  In addition, in March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers: Principal versus Agent Considerations" ("ASU 2016-08"). The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The Company plans to adopt this guidance on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact to its consolidated financial statements.

There are no other recently issued accounting pronouncements that have had, or that the Company believes will have, a material impact on the Company's consolidated financial statements.

- 7 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 4 – DIVESTITURES

Hudson Information Technology (US) business (the "US IT business")

On June 15, 2015, the Company completed the sale (the "US IT Business Sale") of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. (the "Purchaser"). The completion of the US IT Business Sale was effective June 14, 2015. The US IT Business Sale was pursuant to an Asset Purchase Agreement, dated as of May 8, 2015 (the "Agreement"), by and among the Company, Hudson Global Resources Management, Inc., a wholly owned subsidiary of the Company, and the Purchaser. At the closing of the U.S. IT Business Sale, the Company received from the Purchaser pursuant to the Agreement the purchase price of $16,977 in cash. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The US IT business pre-tax loss in accordance with ASC No. 205 "Reporting Discontinued Operations" ("ASC 205") for the three months ended March 31,2016 and 2015 was $0 and $396, respectively.

Netherlands business

On May 7, 2015, the Company entered into a Share Purchase Agreement and completed the sale (the "Netherlands Business Sale") of its Netherlands business to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9,029, which included cash retained of $1,135. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The Netherlands pre-tax profit in accordance with ASC 205 for the three months ended March 31,2016 and 2015was $0 and $356, respectively.

Exit of Businesses in Central and Eastern Europe

In February 2015, the Company's Board of Directors approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the quarter ended June 30, 2015, the Company deemed the liquidation of its Central and Eastern Europe businesses to be substantially complete.

Luxembourg

In March 2015, the Company's management approved the exit of operations in Luxembourg. In the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete.

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 5 – DISCONTINUED OPERATIONS

Effective November 9, 2014, the Company completed the sale of substantially all of the assets and certain liabilities of its Legal eDiscovery business in the U.S. and United Kingdom ("U.K.") to Document Technologies, LLC and DTI of London Limited. In addition, in 2014, the Company ceased operations in Sweden, which was included within the Hudson Europe segment. The Company concluded that the divestiture of the Legal eDiscovery business and the cessation of operations in Sweden meet the criteria for discontinued operations set forth in ASC 205. The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented.

The carrying amounts of the classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included in discontinued operations were as follows:

	March 31, 2016						December 31, 2015
	eDiscovery		Sweden		Total		eDiscovery		Sweden		Total
Total current assets	$	38	$	—	$	38	$	49	$	32	$	81
Total liabilities (a)	$	1,085	$	10	$	1,095	$	1,439	$	4	$	1,443

(a) Total liabilities primarily consisted of restructuring liabilities for lease termination payments.

Reported results for the discontinued operations by period were as follows:

	Three Months Ended March 31, 2016								Three Months Ended March 31, 2015
	eDiscovery			Sweden		Total			eDiscovery			Sweden			Total
Revenue	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)
Reorganization expenses	(139		)	—		(139		)	363			(6		)	357
Gain (loss) from sale and liquidation of discontinued operations	—			—		—			82			—			82
Income (loss) from discontinued operations before income taxes	109			—		109			(193		)	(28		)	(221		)
Provision (benefit) for income taxes	26			—		26			(37		)	—			(37		)
Income (loss) from discontinued operations	$	83		$	—	$	83		$	(156	)	$	(28	)	$	(184	)

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 6 – REVENUE, DIRECT COSTS AND GROSS MARGIN

 The Company’s revenue, direct costs and gross margin were as follows: 

	Three Months Ended March 31, 2016
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	65,856	$	26,572	$	8,799	$	101,227
Direct costs (1)	57,222		574		2,169		59,965
Gross margin	$	8,634	$	25,998	$	6,630	$	41,262
	Three Months Ended March 31, 2015
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	86,580	$	28,106	$	9,631	$	124,317
Direct costs (1)	73,616		485		2,312		76,413
Gross margin	$	12,964	$	27,621	$	7,319	$	47,904

(1) Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Permanent Recruitment and Other category include direct costs for out-of-pocket expenses and third party suppliers. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statement of Operations.

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 7 – STOCK-BASED COMPENSATION

Incentive Compensation Plan

The Company maintains the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated April 26, 2012 (the "ISAP"), pursuant to which it can issue equity-based compensation incentives to eligible participants. The ISAP permits the granting of stock options, restricted stock, restricted stock units, and other types of equity-based awards. The Compensation Committee of the Company’s Board of Directors (the "Compensation Committee") will establish such conditions as it deems appropriate on the granting or vesting of stock options, restricted stock, restricted stock units and other types of equity-based awards. As determined by the Compensation Committee, equity awards also may be subject to immediate vesting upon the occurrence of certain events following a change in control of the Company. The Company primarily grants restricted stock and restricted stock units to its employees. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock of the Company issued under the ISAP.

The Compensation Committee administers the ISAP and may designate any of the following as a participant under the ISAP: any officer or other employee of the Company or its affiliates or individuals engaged to become an officer or employee; consultants or other independent contractors who provide services to the Company or its affiliates; and non-employee directors of the Company. As of March 31, 2016, there were 261,639 shares of the Company’s common stock available for future issuance under the ISAP.

A summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the three months ended March 31, 2016 was as follows:

Vesting conditions	Number of Restricted Stock Units Granted
Performance and service conditions (1) (2)	500,000

(1) The performance conditions with respect to restricted stock units may be satisfied as follows: 

(a) For employees from the Americas, Asia Pacific and Europe 80% of the restricted stock units may be earned on the basis of performance as measured by a "regional adjusted EBITDA," and 20% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA"; and

(b) For employees from the Corporate office 100% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA."

(2) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows:

(a) One-third of the restricted stock units will vest on the first anniversary of the grant date;

(b) One-third of the restricted stock units will vest on the second anniversary of the grant date; and

(c) One-third of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date.

The Company also maintains the Director Deferred Share Plan (the "Director Plan") pursuant to which it can issue restricted stock units to its non-employee directors. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock issued under the ISAP upon a director ceasing service as a member of the Board of Directors of the Company. The restricted stock units vest immediately upon grant and are credited to each of the non-employee director's retirement accounts under the Director Plan. Restricted stock units issued under the Director Plan contain the right to a dividend equivalent award in the form of additional restricted stock units. The dividend equivalent award is calculated using the same rate as the cash dividend paid on a share of the Company's common stock, and then divided by the closing price of the Company’s common stock on the date the dividend is paid to determine the number of additional restricted stock units to grant. Dividend equivalent awards have the same vesting terms as the underlying awards. During the three months ended March 31, 2016, the Company granted 30,687 restricted stock units to its non-employee directors pursuant to the Director Plan.

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

For the three months ended March 31, 2016 and 2015, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units were as follows:

	Three Months Ended
	March 31,
	2016		2015
Stock options	$	5	$	—
Restricted stock	240		385
Restricted stock units	127		148
Total	$	372	$	533

Stock Options

Stock options granted by the Company generally expire between five and ten years after the date of grant and have an exercise price of at least 100% of the fair market value of the underlying share of common stock on the date of grant.

As of March 31, 2016, the Company had approximately $12 of unrecognized stock-based compensation expense related to outstanding unvested stock options. The Company expects to recognize that cost over a weighted average service period of 0.60 years.

Changes in the Company’s stock options for the three months ended March 31,2016 and 2015 were as follows: 

	Three Months Ended March 31,
	2016				2015
	Number of Options		Weighted Average Exercise Price per Share		Number of Options		Weighted Average Exercise Price per Share
Options outstanding at January 1,	206,000		$	8.13	756,800		$	8.78
Expired/forfeited	(16,000	)	15.86		(109,000	)	13.25
Options outstanding at March 31,	190,000		$	7.48	647,800		$	8.03
Options exercisable at March 31,	165,000		$	8.24	647,800		$	8.03

Restricted Stock

As of March 31, 2016, the Company had approximately $462 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock. The Company expects to recognize that cost over a weighted average service period of 0.51 years. Restricted stock awards have voting and dividend rights as of the grant date.

Changes in the Company’s restricted stock for the three months ended March 31,2016 and 2015 were as follows:

- 12 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

	Three Months Ended March 31,
	2016			2015
	Number of Shares of Restricted Stock	Weighted Average Grant Date Fair Value		Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value
Unvested restricted stock at January 1,	680,000	$	1.60	803,999		$	3.00
Granted	—	—		590,100		2.84
Vested	—	—		(132,775	)	3.50
Forfeited	—	—		(171,622	)	3.17
Unvested restricted stock at March 31,	680,000	$	1.60	1,089,702		$	2.82

Restricted Stock Units

As of March 31, 2016, the Company had approximately $1,100 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock units. The Company expects to recognize that cost over a weighted average service period of 1.90 years. Restricted stock units granted to employees have no voting or dividend rights until the awards are vested.

Changes in the Company’s restricted stock units for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016				2015
	Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value		Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value
Unvested restricted stock units at January 1,	—		$	—	119,940		$	3.57
Granted	530,687		2.79		144,664		2.84
Vested	(30,687	)	2.73		(56,310	)	2.95
Forfeited	—		—		(42,500	)	3.21
Unvested restricted stock units at March 31,	500,000		$	2.79	165,794		$	3.24

Defined Contribution Plan and Employer-Matching Contributions

The Company maintains the Hudson Global, Inc. 401(k) Savings Plan (the "401(k) plan"). The 401(k) plan allows eligible employees to contribute up to 15% of their earnings to the 401(k) plan. The Company has the discretion to match employees’ contributions up to 3% of the employees' earnings through a contribution of the Company’s common stock or cash to the 401(k) plan. Vesting of the Company’s contribution occurs over a five-year period. For the three months ended March 31,2016 and 2015, the Company’s current year expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows:

	Three Months Ended
	March 31,
($ in thousands, except otherwise stated)	2016		2015
Expense recognized for the 401(k) plan	$	20	$	75
Contributions to satisfy prior years' employer-matching liability
Number of shares of the Company's common stock issued (in thousands)	—		116
Market value per share of the Company's common stock on contribution date (in dollars)	$	—	$	2.71
Non-cash contribution made for employer matching liability	$	—	$	314

- 13 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 8 – INCOME TAXES

Under ASC 270, "Interim Reporting", and ASC 740-270, "Income Taxes – Intra Period Tax Allocation", the Company is required to adjust its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate. Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. Applying the provisions of ASC 270 and ASC 740-270 could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections.

Effective Tax Rate

The benefit from income taxes for the three months ended March 31, 2016 was $326 on a pre-tax loss from continuing operations of $3,896, compared to a benefit from income taxes of $129 on pre-tax loss from continuing operations of $6,783 for the same period in 2015. The Company’s effective income tax rate was 8.4% and 1.9% for the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016 and for the three months ended March 31, 2015, the effective tax rate differed from the U.S. Federal statutory rate of 35% primarily due to the inability of the Company to recognize tax benefits on certain losses until positive earnings are achieved in the U.S. and certain other foreign jurisdictions, non-deductible expenses, and variations from the U.S. tax rate in foreign jurisdictions.

Uncertain Tax Positions

As of March 31, 2016 and December 31, 2015, the Company had $2,316 and $2,279, respectively, of unrecognized tax benefits, including interest and penalties, which if recognized in the future, would lower the Company’s annual effective income tax rate. Accrued interest and penalties were $566 and $536 as of March 31, 2016 and December 31, 2015, respectively. Estimated interest and penalties are classified as part of the provision for income taxes in the Company’s Condensed Consolidated Statement of Operations and totaled to a provision of$14 for the three months ended March 31, 2016 and 2015.

In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities. Tax years with net operating losses ("NOLs") remain open until such losses expire or until the statutes of limitations for those years when the NOLs are used expire. As of March 31, 2016, the Company's open tax years, which remain subject to examination by the relevant tax authorities, were principally as follows:

	Year
Earliest tax years which remain subject to examination by the relevant tax authorities:
U.S. Federal	2012
Majority of U.S. state and local jurisdictions	2011
United Kingdom	2014
Australia	2011
Majority of other non-U.S. jurisdictions	2010

The Company believes that its tax reserves are adequate for all years that remain subject to examination or are currently under examination.

Based on information available as of March 31, 2016, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $200 to $400 over the next 12 months as a result of projected resolutions of global tax examinations and controversies and potential expirations of the applicable statutes of limitations.

NOTE 9 – EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options "in-the-money", unvested restricted stock and unvested restricted stock units. The dilutive impact of stock options, unvested restricted stock, and unvested restricted stock units is determined by applying the "treasury stock" method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period; or (ii) would be satisfied if the end of the reporting period were the end of the related

- 14 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met.

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016			2015
Earnings (loss) per share ("EPS"):
EPS - basic and diluted:
Income (loss) from continuing operations	$	(0.10	)	$	(0.20	)
Income (loss) from discontinued operations	—			(0.01		)
Net income (loss)	$	(0.10	)	$	(0.21	)
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$	(3,570	)	$	(6,654	)
Income (loss) from discontinued operations	83			(184		)
Net income (loss)	$	(3,487	)	$	(6,838	)
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	34,631			33,053
Common stock equivalents: stock options and other stock-based awards (a)	—			—
Weighted average number of common stock outstanding - diluted	34,631			33,053

(a) For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 7 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three months ended March 31, 2016 and 2015 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:

	Three Months Ended
	March 31,
	2016	2015
Unvested restricted stock	680,000	1,089,702
Unvested restricted stock units	500,000	165,794
Stock options	165,000	647,800
Total	1,345,000	1,903,296

- 15 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 10 – RESTRICTED CASH

A summary of the Company’s restricted cash included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 was as follows: 

	March 31, 2016		December 31, 2015
Included under the caption "Prepaid and other":
Client guarantees	$	133	$	118
Other	115		110
Total amount under the caption "Prepaid and other"	$	248	$	228
Included under the caption "Other assets":
Collateral accounts	$	179	$	229
Rental deposits	449		480
Total amount under the caption "Other assets"	$	628	$	709
Total restricted cash	$	876	$	937

Collateral accounts primarily include deposits held under a collateral trust agreement, which supports the Company’s workers’ compensation policy. The rental deposits with banks include amounts held as guarantees from subtenants in the U.K. Client guarantees were held in banks in Belgium as deposits for various client projects. Other primarily includes bank guarantee for licensing in Switzerland.

NOTE 11 – PROPERTY AND EQUIPMENT, NET

As of March 31, 2016 and December 31, 2015, property and equipment, net, was as follows:

	March 31, 2016		December 31, 2015
Computer equipment	$	6,360	$	5,911
Furniture and equipment	2,116		2,668
Capitalized software costs	18,308		17,946
Leasehold improvements	15,396		15,522
	42,180		42,047
Less: accumulated depreciation and amortization	34,268		34,119
Property and equipment, net	$	7,912	$	7,928

The Company had expenditures of approximately $392 and $513 for acquired property and equipment, mainly consisting of software, furniture and fixtures and leasehold improvements, which had not been placed in service as of March 31, 2016 and December 31, 2015, respectively. Depreciation expense is not recorded for such assets until they are placed in service.

- 16 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

Non-Cash Capital Expenditures

The Company has acquired certain computer equipment under capital lease agreements. The current portion of the capital lease obligations are included under the caption "Accrued expenses and other current liabilities" in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 and the non-current portion of the capital lease obligations are included under the caption "Other non-current liabilities" in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015. A summary of the Company’s equipment acquired under capital lease agreements were as follows:

	March 31, 2016		December 31, 2015
Capital lease obligation, current	$	66	$	62
Capital lease obligation, non-current	$	218	$	229

NOTE 12 – GOODWILL

The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption "Other Assets" in the accompanying Condensed Consolidated Balance Sheets, as of March 31, 2016 and December 31, 2015. The goodwill related to the earn-out payment made in 2010 for the Company’s 2007 acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.

	Carrying Value
	2016
Goodwill, January 1,	$	1,938
Currency translation	14
Goodwill, March 31,	$	1,952

- 17 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 13 – BUSINESS REORGANIZATION EXPENSES

The Company initiated and executed certain strategic actions requiring business reorganization expenses ("2016 Exit Plan").Business exit costs associated with the 2016 Exit Plan primarily consisted of employee termination benefits, lease termination payments and costs for elimination of contracts for certain discontinued services and locations.

The Board previously approved other reorganization plans in prior years (the "Previous Plans"). Business exit costs associated with Previous Plans primarily consisted of employee termination benefits, lease termination payments and costs for elimination of contracts for certain discontinued services and locations.

For the three months ended March 31,2016, restructuring charges associated with these initiatives primarily included employee separation costs in Asia Pacific and lease termination payments for rationalized offices in Europe under the 2016 Exit Plan and Previous Plans. Business reorganization expenses for the three months ended March 31, 2016 and 2015 by plan were as follows:

	Three Months Ended March 31,
	2016		2015
Previous Plans	$	223	$	1,343
2016 Exit Plan	414		—
Total reorganization expenses in continuing operations	$	637	$	1,343

The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to the 2016 Exit Plan and Previous Plans that were incurred or recovered during the three months ended March 31,2016 in continuing operations. The amounts in the "Changes in Estimate" and "Additional Charges" columns are classified as business reorganization expenses in the Company’s Condensed Consolidated Statement of Operations. Amounts in the "Payments" column represent primarily the cash payments associated with the 2016 Exit Plan and Previous Plans. Changes in the accrued business reorganization expenses for the three months ended March 31,2016 were as follows:

	December 31, 2015		Changes in Estimate			Additional Charges		Payments			March 31, 2016
Lease termination payments	$	2,970	$	186		$	190	$	(272	)	$	3,074
Employee termination benefits	1,186		—			170		(386		)	970
Other associated costs	208		(19		)	110		(279		)	20
Total	$	4,364	$	167		$	470	$	(937	)	$	4,064

- 18 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 14 – COMMITMENTS AND CONTINGENCIES

Consulting, Employment and Non-compete Agreements

The Company has entered into various consulting and employment agreements with certain key members of management. These agreements generally (i) are one year in length, (ii) contain restrictive covenants, (iii) under certain circumstances, provide for compensation and, subject to providing the Company with a release, severance payments, and (iv) are automatically renewed annually unless either party gives sufficient notice of termination.

Litigation and Complaints

The Company is subject, from time to time, to various claims, lawsuits, contracts disputes and other complaints from, for example, clients, candidates, suppliers, landlords for both leased and subleased properties, former and current employees, and regulators or tax authorities arising in the ordinary course of business. The Company routinely monitors claims such as these, and records provisions for losses when the claim becomes probable and the amount due is estimable. Although the outcome of these claims cannot be determined, the Company believes that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity.

For matters that have reached the threshold of probable and estimable, the Company has established reserves for legal, regulatory and other contingent liabilities. The Company’s reserves were $157 and $109 as of March 31, 2016 and December 31, 2015, respectively.

Potential Costs Associated with Termination

In 2015, the Company incurred compensation and benefits obligations to its former Chairman and Chief Executive Officer, Manuel Marquez, under his employment agreement in connection with the Company providing Mr. Marquez notice of non-renewal of his employment agreement, which is treated as a termination of his employment without cause, subject to his execution of a release. The Company has accrued $747 as of March 31, 2016 in connection with compensation and benefits Mr. Marquez is entitled to upon a termination without cause. Mr. Marquez does not agree with this treatment of compensation and benefits under his employment agreement and, on August 13, 2015, filed an arbitration claim against the Company for additional amounts of up to approximately $2,000 and reimbursement of his legal fees. The Company does not agree with Mr. Marquez’s interpretation of the employment agreement and is vigorously defending against such claim for additional amounts. The Company expects the arbitrator will issue his decision on Mr. Marquez’s claim during the second quarter of 2016.

Asset Retirement Obligations

The Company has certain asset retirement obligations that are primarily the result of legal obligations for the removal of leasehold improvements and restoration of premises to their original condition upon termination of leases. The asset retirement obligations are included under the caption "Other non-current liabilities" in the Condensed Consolidated Balance Sheets. The Company’s asset retirement obligations that are included in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016		December 31, 2015
Total asset retirement obligations	$	1,989	$	1,962

- 19 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 15 – CREDIT AGREEMENTS

Receivables Finance Agreement with Lloyds Bank Commercial Finance Limited and Lloyds Bank PLC

On August 1, 2014, the Company’s U.K. subsidiary ("U.K. Borrower") entered into a receivables finance agreement for an asset-based lending funding facility (the "Lloyds Agreement") with Lloyds Bank PLC and Lloyds Bank Commercial Finance Limited (together, "Lloyds"). The Lloyds Agreement provides the U.K. Borrower with the ability to borrow up to $21,540 (£15,000). Extensions of credit are based on a percentage of the eligible accounts receivable less required reserves from the Company's U.K. operations. The initial term is two years with renewal periods every three months thereafter. Borrowings under this facility are secured by substantially all of the assets of the U.K. Borrower.

The credit facility under the Lloyds Agreement contains two tranches. The first tranche is a revolving facility based on the billed temporary contracting and permanent recruitment activities in the U.K. operations ("Lloyds Tranche A"). The borrowing limit of Lloyds Tranche A is $17,232 (£12,000) based on 83% of eligible billed temporary contracting and permanent recruitment receivables. The second tranche is a revolving facility that is based on the unbilled work-in-progress (as defined under the receivables finance agreement) activities in the Company's U.K. operations ("Lloyds Tranche B"). The borrowing limit of Lloyds Tranche B is $4,308 (£3,000) based on 75% of eligible work-in-progress from temporary contracting and 25% of eligible work-in-progress from permanent recruitment activities. For both tranches, borrowings may be made with an interest rate based on a base rate as determined by Lloyds Bank PLC, based on the Bank of England base rate, plus 1.75%.

The Lloyds Agreement contains various restrictions and covenants including (1) that true credit note dilution may not exceed 5%, measured at audit on a regular basis; (2) debt turn may not exceed 55 days over a three month rolling period; (3) dividends by the U.K. Borrower to the Company are restricted to the value of post-tax profits; and (4) at the end of each month, there must be a minimum excess availability of $2,872 (£2,000).

The details of the Lloyds Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Borrowing capacity	$	6,402
Less: outstanding borrowing	(508		)
Additional borrowing availability	$	5,894
Interest rates on outstanding borrowing	2.25		%

The Company was in compliance with all financial covenants under the Lloyds Agreement as of March 31, 2016.

Facility Agreement with National Australia Bank Limited

On October 30, 2015, Hudson Global Resources (Aust) Pty Limited ("Hudson Australia") and Hudson Global Resources (NZ) Limited ("Hudson New Zealand"), both subsidiaries of Hudson Global, Inc., entered into a Finance Agreement, dated as of October 27, 2015 (the "Finance Agreement"), with National Australia Bank Limited ("NAB"), a NAB Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "Australian Receivables Agreement"), with NAB and a BNZ Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "New Zealand Receivables Agreement"), with Bank of New Zealand ("BNZ").

The Finance Agreement provides a bank guarantee facility of up to $2,297 (AUD 3,000) for Hudson Australia and Hudson New Zealand. The Finance Agreement matures and becomes due and payable on October 27, 2018. A fee equal to 1.5% per annum will be charged on each bank guarantee issued under the Finance Agreement. The Finance Agreement bears a fee, payable semiannually in arrears, equal to 0.3% per annum of NAB’s commitment under the Finance Agreement.

The Australian Receivables Agreement provides a receivables facility of up to $19,143 (AUD 25,000) for Hudson Australia, which is based on an agreed percentage of eligible accounts receivable, and of which up to $3,063 (AUD 4,000) may be used to support the working capital requirements of operations in China, Hong Kong and Singapore. The Australian Receivables Agreement does not have a stated maturity date and can be terminated by Hudson Australia or NAB upon 90 days written notice. Borrowings under the Australian Receivables Agreement may be made with an interest rate based on a market

- 20 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

rate plus a margin of 1.5% per annum. The Australian Receivable Agreement bears a fee, payable monthly in advance, equal to $5 (AUD 6) per month.

The New Zealand Receivables Agreement provides a receivables facility of up to $3,455 (NZD 5,000) for Hudson New Zealand, which is based on an agreed percentage of eligible accounts receivable. The New Zealand Receivables Agreement does not have a stated maturity date and can be terminated by Hudson New Zealand or BNZ upon 90 days written notice. Borrowings under the New Zealand Receivables Agreement may be made with an interest rate based on a market rate. The New Zealand Receivables Agreement bears a fee, payable monthly in advance, equal to $1 (NZD 1) per month.

The details of the NAB Finance Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Finance Agreement:
Financial guarantee capacity	$	2,297
Less: outstanding financial guarantees	(1,855		)
Additional availability for financial guarantees	$	442
Interest rates on outstanding financial guarantees	1.80		%
Australian Receivables Agreement:
Borrowing capacity	$	14,503
Less: outstanding borrowing	(5,206		)
Additional borrowing availability	$	9,297
Interest rates on outstanding borrowing	3.65		%
New Zealand Receivables Agreement:
Borrowing capacity	$	1,841
Less: outstanding borrowing	(56		)
Additional borrowing availability	$	1,785
Interest rates on outstanding borrowing	4.60		%

Amounts owing under the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement are secured by substantially all of the assets of Hudson Australia and Hudson New Zealand. Each of the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement contains various restrictions and covenants applicable to the Obligors, including: a requirement that the Obligors maintain (1) a minimum Fixed Charge Coverage Ratio (as defined in the NAB Facility Agreement) of 1.50x as of the last day of each calendar quarter; and (2) a minimum Receivables Ratio (as defined by the NAB Facility Agreement) of 1.20x.

The Company was in compliance with all financial covenants under the NAB Facility Agreement as of March 31, 2016.

Loan and Security Agreement with Siena Lending Group LLC

Upon the sale of US IT business, the Company exercised its right to terminate its loan and security agreement with Siena Lending Group LLC ("Siena"). The Company paid Siena a termination fee of $161 recognized as a reduction to the gain on sale of the US IT business and $417 of cash to secure an outstanding letter of credit for a real estate lease. Siena will return the restricted cash to the Company once the outstanding letter of credit is returned to Siena.

Other Credit Agreements

The Company also has lending arrangements with local banks through its subsidiaries in the Belgium and Singapore. The Belgium subsidiary has a $1,138 (€1,000) overdraft facility. Borrowings under the Belgium arrangement may be made using an

- 21 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

interest rate based on the one-month EURIBOR plus a margin, and the interest rate was 2.75% as of March 31, 2016. The lending arrangement in Belgium has no expiration date and can be terminated with a 15-day notice period. In Singapore, the Company’s subsidiary can borrow up to $148 (SGD 200) for working capital purposes. Interest on borrowings under the Singapore overdraft facility is based on the Singapore Prime Rate plus a margin of 1.75%, and it was 6.00% on March 31, 2016. The Singapore overdraft facility expires annually each August, but can be renewed for one year periods at that time. There were no outstanding borrowings under the Belgium and Singapore lending agreements as of March 31, 2016.

The average aggregate monthly outstanding borrowings under the Lloyds Agreement, NAB Facility Agreement and the credit agreements in Belgium and Singapore were $5,841 for the three months ended March 31,2016. The weighted average interest rate on all outstanding borrowings for the three months ended March 31,2016 was 3.59%.

The Company continues to use the aforementioned credit to support its ongoing global working capital requirements, capital expenditures and other corporate purposes and to support letters of credit. Letters of credit and bank guarantees are used primarily to support office leases.

NOTE 16 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss), net of tax, consisted of the following:

	March 31,		December 31,
	2016		2015
Foreign currency translation adjustments	$	10,827	$	10,159
Pension plan obligations	135		133
Accumulated other comprehensive income (loss)	$	10,962	$	10,292

NOTE 17 – STOCKHOLDERS' EQUITY

 In December 2015, the Company's Board of Directors determined that the Company intends to pay a regular, quarterly cash dividend on its common stock. The Company's Board of Directors declared a cash dividend of $0.05 per share paid on March 25, 2016 to shareholders of record as of March 15, 2016. As a result, as of March 31, 2016, the Company paid $1,713 in dividends to shareholders. The cash dividend payment is applied to accumulated deficit.

On July 30, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $10,000 of the Company's common stock. The Company intends to make purchases from time to time as market conditions warrant. This authorization does not expire. During the three months ended March 31,2016, the Company repurchased 366,113 shares for a total cost of $985. As of March 31, 2016, under the July 30, 2015 authorization, the Company had repurchased 893,747 shares for a total cost of $2,372.

- 22 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

NOTE 18 – SEGMENT AND GEOGRAPHIC DATA

Segment Reporting

The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated to the reportable segments. Segment information is presented in accordance with ASC 280, "Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Elimination			Total
For The Three Months Ended March 31, 2016
Revenue, from external customers	$	3,837		$	51,071		$	46,319		$	—		$	—		$	101,227
Inter-segment revenue	—			—			62			—			(62		)	—
Total revenue	$	3,837		$	51,071		$	46,381		$	—		$	(62	)	$	101,227
Gross margin, from external customers	$	3,341		$	18,771		$	19,150		$	—		$	—		$	41,262
Inter-segment gross margin	(2		)	(60		)	62			—			—			—
Total gross margin	$	3,339		$	18,711		$	19,212		$	—		$	—		$	41,262
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	(16	)	$	197		$	484		$	(28	)	$	—		$	637
EBITDA (loss) (a)	$	162		$	(1,231	)	$	(330	)	$	(1,755	)	$	—		$	(3,154	)
Depreciation and amortization	22			404			183			79			—			688
Intercompany interest income (expense), net	—			—			(57		)	57			—			—
Interest income (expense), net	—			(40		)	(14		)	—			—			(54		)
Income (loss) from continuing operations before income taxes	$	140		$	(1,675	)	$	(584	)	$	(1,777	)	$	—		$	(3,896	)
As of March 31, 2016
Accounts receivable, net	$	3,162		$	31,331		$	29,715		$	—		$	—		$	64,208
Long-lived assets, net of accumulated depreciation and amortization	$	28		$	7,475		$	1,851		$	595		$	—		$	9,949
Total assets	$	7,243		$	51,313		$	54,047		$	9,235		$	—		$	121,838

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HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended March 31, 2015
Revenue, from external customers	$	10,978		$	53,139		$	60,200		$	—		$	—		$	124,317
Inter-segment revenue	—			—			14			—			(14		)	—
Total revenue	$	10,978		$	53,139		$	60,214		$	—		$	(14	)	$	124,317
Gross margin, from external customers	$	4,621		$	20,876		$	22,407		$	—		$	—		$	47,904
Inter-segment gross margin	(7		)	(31		)	37			—			1			—
Total gross margin	$	4,614		$	20,845		$	22,444		$	—		$	1		$	47,904
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	421		$	8		$	880		$	34		$	—		$	1,343
EBITDA (loss) (a)	$	(1,620	)	$	804		$	(2,150	)	$	(2,626	)	$	—		$	(5,592	)
Depreciation and amortization	102			671			228			110			—			1,111
Intercompany interest income (expense), net	—			—			(130		)	134			(4		)	—
Interest income (expense), net	(33		)	(42		)	(5		)	—			—			(80		)
Income (loss) from continuing operations before income taxes	$	(1,755	)	$	91		$	(2,513	)	$	(2,602	)	$	(4	)	$	(6,783	)
As of March 31, 2015
Accounts receivable, net	$	6,934		$	31,957		$	40,618		$	—		$	—		$	79,509
Long-lived assets, net of accumulated depreciation and amortization	$	535		$	7,300		$	2,073		$	989		$	—		$	10,897
Total assets	$	9,423		$	49,300		$	58,811		$	3,637		$	—		$	121,171

(a) Securities and Exchange Commission ("SEC") Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability.

- 24 -

HUDSON GLOBAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except share and per share amounts)

(unaudited)

Geographic Data Reporting

A summary of revenues for the three months ended March 31, 2016 and 2015 and long-lived assets and net assets by geographic area as of March 31, 2016 and 2015 were as follows: 

	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas			Total
For The Three Months Ended March 31, 2016
Revenue (a)	$	34,196	$	39,132	$	3,634	$	12,123	$	11,939	$	203		$	101,227
For The Three Months Ended March 31, 2015
Revenue (a)	$	38,341	$	39,041	$	10,826	$	21,859	$	14,098	$	152		$	124,317
As of March 31, 2016
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,684	$	4,191	$	623	$	167	$	3,284	$	—		$	9,949
Net assets	$	15,771	$	10,046	$	8,632	$	8,211	$	13,435	$	(58	)	$	56,037
As of March 31, 2015
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,752	$	4,629	$	1,512	$	321	$	2,671	$	12		$	10,897
Net assets	$	15,141	$	11,633	$	3,742	$	8,866	$	11,088	$	(18	)	$	50,452

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment and intangibles. Corporate assets are included in the United States.

NOTE 19 – SUBSEQUENT EVENTS

On April 27, 2016, the Board of Directors declared a cash dividend of $0.05 per share that will be paid on June 24, 2016 to shareholders of record as of June 14, 2016.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with the Condensed Consolidated Financial Statements and the notes thereto, included in Item 1 of this Form 10-Q. The reader should also refer to the Consolidated Financial Statements and notes of Hudson Global, Inc. and its subsidiaries (the "Company") filed in its Annual Report on Form 10-K for the year ended December 31, 2015. This MD&A contains forward-looking statements. Please see "FORWARD-LOOKING STATEMENTS" for a discussion of the uncertainties, risks and assumptions associated with these statements. This MD&A also uses the non-generally accepted accounting principle measure of earnings before interest, taxes, depreciation and amortization ("EBITDA"). See Note 18of this Form 10-Q to the Condensed Consolidated Financial Statements for EBITDA segment reconciliation information.

This MD&A includes the following sections:

• Executive Overview

• Results of Operations

• Liquidity and Capital Resources

• Contingencies

• Recent Accounting Pronouncements

• Critical Accounting Policies

• Forward-Looking Statements

Executive Overview

The Company has expertise in recruiting mid-level professional talent across all management disciplines in a wide range of industries. The Company matches clients and candidates to address client needs on a part time, full time and interim basis. Part of that expertise is derived from research on hiring trends and the Company's clients’ current successes and challenges with their staff. This research has helped enhance the Company's understanding about the number of new hires that do not meet its clients’ long-term goals, the reasons why, and the resulting costs to the Company's clients. With operations in 12 countries and relationships withspecialized professionals around the globe, the Company brings a strong ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for the Company's clients. The Company combines broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve maximum performance. The Company's focus is to continually upgrade its service offerings, delivery capability and assessment tools to make candidates more successful in achieving its clients' business requirements.

The Company’s proprietary frameworks, assessment tools and leadership development programs, coupled with its broad geographic footprint, have allowed the Company to design and implement regional and global recruitment solutions that the Company believes greatly enhance the quality of its clients' hiring.

To accelerate the implementation of the Company's strategy, the Company engaged in the following initiatives:

• Investing in the core businesses and practices that present the greatest potential for profitable growth.

• Facilitating growth and development of the global RPO business.

• Improving further the Company’s cost structure and efficiency of its support functions and infrastructure.

• Building and differentiating the Company's brand through its unique talent solutions offerings.

Current Market Conditions

Economic conditions in most of the world's major markets remain mixed. Conditions in Europe have shown improvement with GDP growth in most of the major markets, as well as forecasted GDP growth for the remainder of 2016. In the U.K., uncertainty around the impact of the EU referendum may impact future GDP growth. Australia faces a slow growth outlook for the remainder of 2016, while the outlook for Asia is uncertain given China's slowing growth outlook. The Company

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closely monitors the economic environment and business climate in its markets and responds accordingly. At this time, the Company is unable to accurately predict the outcome of these events or changes in general economic conditions and their effect on the demand for the Company's services.

Financial Performance

The Company achieved mixed financial performance for the first quarter of 2016 in most of the major markets in which it operates. On a constant currency basis, for the three months ended March 31, 2016, revenue and gross margin declined by $17.0 million and $4.6 million, or 14.4% and 10.1%, respectively, compared to the same period in 2015. A primary driver of the decrease was attributable to the prior year divestitures of the Netherlands, US IT, Luxembourg and Central and Eastern Europe businesses. The following table reconciles the change in reported revenue and gross margin for the quarter:

	Three Months Ended March 31, 2016
$ in thousands	Change in Revenue on a Constant Currency Basis			Change in Gross Margin on a Constant Currency Basis
Netherlands decrease	$	(9,530	)	$	(2,085	)
US IT business decrease	(7,503		)	(1,774		)
Luxembourg decrease	(214		)	(152		)
Central and Eastern Europe decrease	(111		)	(97		)
Retained businesses increase (decrease)	392			(535		)
Reported change	$	(16,966	)	$	(4,643	)

In addition to the impact of the divested businesses detailed above, the Company experienced an overall increase in its retained businesses for revenue in the first quarter of 2016 on a constant currency basis. This was driven by increases in revenue in Australia, Americas RPO and Belgium as the Company continued to see strong recruitment and RPO results in these markets. These increases were partially offset by revenue declines in the U.K. and China.

The following is a summary of the highlights for the three months ended March 31, 2016 and 2015. This summary should be considered in the context of the additional disclosures in this MD&A which further highlight the results by segment including the impact of the significant developments discussed above.

• Revenue was $101.2 million for the three months ended March 31, 2016, compared to $124.3 million for the same period in 2015, a decrease of $23.1 million, or 18.6%.

◦ On a constant currency basis, the Company's revenue decreased$17.0 million, or 14.4%, mainly due to decreases of $16.1 million in contracting revenue (down 19.6% compared to the same period in 2015) and $0.4 million in permanent recruitment revenue (down 1.4% compared to the same period in 2015).

• Gross margin was $41.3 million for the three months ended March 31, 2016, compared to $47.9 million for the same period in 2015, a decrease of $6.6 million, or 13.9%.

◦ On a constant currency basis, gross margin decreased$4.6 million, or 10.1%, mainly due to decreases of $3.7 million in temporary recruitment gross margin (down 30.1% compared to the same period in 2015) and $0.2 million in talent management gross margin (down 2.9% compared to the same period in 2015). Permanent recruitment gross margin remained flat as compared to the same period in 2015.

• Selling, general and administrative expenses and other non-operating income (expense) ("SG&A and Non-Op") were $43.8 million for the three months ended March 31, 2016, compared to $52.2 million for the same period in 2015, a decrease of $8.4 million, or 16.1%.

◦ On a constant currency basis, SG&A and Non-Op decreased$6.1 million, or 12.2%. SG&A and Non-Op, as a percentage of revenue, were 43.2% for the three months ended March 31, 2016, compared to 42.2% for the same period in 2015.

◦ Business reorganization expenses were $0.6 million for the three months ended March 31, 2016, compared to $1.3 million for the same period in 2015, a decrease of approximately $0.7 million. On a constant currency basis, business reorganization expenses decreased$0.7 million.

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◦ EBITDA loss was $3.2 million for the three months ended March 31, 2016, compared to EBITDA loss of $5.6 million for the same period in 2015, a decrease in EBITDA loss of $2.4 million. On a constant currency basis, EBITDA loss decreased $2.1 million.

• Net loss was $3.5 million for the three months ended March 31, 2016, compared to a net loss of $6.8 million for the same period in 2015, a decrease in net loss of $3.4 million. On a constant currency basis, net loss decreased $3.0 million.

Constant Currency

The Company operates on a global basis, with the majority of its gross margin generated outside of the U.S. Accordingly, fluctuations in foreign currency exchange rates can affect the Company's results of operations. For the discussion of reportable segment results of operations, the Company uses constant currency information. Constant currency compares financial results between periods as if exchange rates had remained constant period-over-period. The Company defines the term "constant currency" to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. The Company’s management reviews and analyzes business results in constant currency and believes these results better represent the Company’s underlying business trends. Changes in foreign currency exchange rates generally impact only reported earnings.

Changes in revenue, gross margin, SG&A and Non-Op, business reorganization expenses, operating income (loss), net income (loss) and EBITDA (loss) from continuing operations include the effect of changes in foreign currency exchange rates. The tables below summarize the impact of foreign currency exchange adjustments on the Company’s operating results for the three months ended March 31, 2016 and 2015.

- 28 -

	Three Months Ended March 31,
	2016			2015
	As			As			Currency			Constant
$ in thousands	reported			reported			translation			currency
Revenue:
Hudson Americas	$	3,837		$	10,978		$	(15	)	$	10,963
Hudson Asia Pacific	51,071			53,139			(3,645		)	49,494
Hudson Europe	46,319			60,200			(2,464		)	57,736
Total	$	101,227		$	124,317		$	(6,124	)	$	118,193
Gross margin:
Hudson Americas	$	3,341		$	4,621		$	(15	)	$	4,606
Hudson Asia Pacific	18,771			20,876			(1,222		)	19,654
Hudson Europe	19,150			22,407			(762		)	21,645
Total	$	41,262		$	47,904		$	(1,999	)	$	45,905
SG&A and Non-Op (a):
Hudson Americas	$	3,195		$	5,812		$	(26	)	$	5,786
Hudson Asia Pacific	19,745			20,034			(1,391		)	18,643
Hudson Europe	19,057			23,713			(877		)	22,836
Corporate	1,782			2,594			—			2,594
Total	$	43,779		$	52,153		$	(2,294	)	$	49,859
Business reorganization expenses:
Hudson Americas	$	(16	)	$	421		$	—		$	421
Hudson Asia Pacific	197			8			(1		)	7
Hudson Europe	484			880			(32		)	848
Corporate	(28		)	34			—			34
Total	$	637		$	1,343		$	(33	)	$	1,310
Operating income (loss):
Hudson Americas	$	206		$	(1,429	)	$	5		$	(1,424	)
Hudson Asia Pacific	(833		)	212			231			443
Hudson Europe	(240		)	(1,131		)	118			(1,013		)
Corporate	(2,838		)	(4,368		)	—			(4,368		)
Total	$	(3,705	)	$	(6,716	)	$	354		$	(6,362	)
Net income (loss), consolidated	$	(3,487	)	$	(6,838	)	$	398		$	(6,440	)
EBITDA (loss) from continuing operations (b):
Hudson Americas	$	162		$	(1,620	)	$	12		$	(1,608	)
Hudson Asia Pacific	(1,231		)	804			171			975
Hudson Europe	(330		)	(2,150		)	149			(2,001		)
Corporate	(1,755		)	(2,626		)	—			(2,626		)
Total	$	(3,154	)	$	(5,592	)	$	332		$	(5,260	)

(a) SG&A and Non-Op is a measure that management uses to evaluate the segments’ expenses, which include the following captions on the Condensed Consolidated Statement of Operations: Selling, general and administrative expenses; and other income (expense), net. Corporate management service allocations are included in the segments’ other income (expense).

(b) See EBITDA reconciliation in the following section.

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Use of EBITDA (Non-GAAP measure)

Management believes EBITDA is a meaningful indicator of the Company’s performance that provides useful information to investors regarding the Company’s financial condition and results of operations. Management also considers EBITDA to be the best indicator of operating performance and most comparable measure across the regions in which the Company operates. Management also uses this measure to evaluate capital needs and working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income, or net income prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") or as a measure of the Company’s profitability. EBITDA is derived from net income (loss) adjusted for the provision for (benefit from) income taxes, interest expense (income), and depreciation and amortization.

The reconciliation of EBITDA to the most directly comparable GAAP financial measure is provided in the table below:

	Three Months Ended
	March 31,
$ in thousands	2016			2015
Net income (loss)	$	(3,487	)	$	(6,838	)
Adjustment for income (loss) from discontinued operations, net of income taxes	83			(184		)
Income (loss) from continuing operations	$	(3,570	)	$	(6,654	)
Adjustments to net income (loss) from continuing operations
Provision for (benefit from) income taxes	(326		)	(129		)
Interest expense, net	54			80
Depreciation and amortization expense	688			1,111
Total adjustments from net income (loss) to EBITDA (loss)	416			1,062
EBITDA (loss) from continuing operations	$	(3,154	)	$	(5,592	)

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Temporary Contracting Data

The following table sets forth the Company’s temporary contracting revenue, gross margin, and gross margin as a percentage of revenue for the three months ended March 31, 2016 and 2015. 

	Three Months Ended March 31,
	2016			2015
$ in thousands	As reported			As reported			Currency translation			Constant currency
TEMPORARY CONTRACTING DATA (a):
Revenue:
Hudson Americas	$	365		$	8,039		$	—		$	8,039
Hudson Asia Pacific	35,713			35,676			(2,694		)	32,982
Hudson Europe	29,778			42,865			(1,944		)	40,921
Total	$	65,856		$	86,580		$	(4,638	)	$	81,942
Gross margin:
Hudson Americas	$	45		$	1,791		$	—		$	1,791
Hudson Asia Pacific	4,374			4,578			(340		)	4,238
Hudson Europe	4,215			6,595			(277		)	6,318
Total	$	8,634		$	12,964		$	(617	)	$	12,347
Gross margin as a percentage of revenue:
Hudson Americas	12.3		%	22.3		%	N/A			22.3		%
Hudson Asia Pacific	12.2		%	12.8		%	N/A			12.8		%
Hudson Europe	14.2		%	15.4		%	N/A			15.4		%
Total	13.1		%	15.0		%	N/A			15.1		%

(a) Temporary contracting gross margin and gross margin as a percentage of revenue are shown to provide additional information regarding the Company’s ability to manage its cost structure and to provide further comparability relative to the Company's peers. Temporary contracting gross margin is derived by deducting the direct costs of temporary contracting from temporary contracting revenue. The Company’s calculation of gross margin may differ from that of other companies. See Note 6 to the Condensed Consolidated Financial Statements for direct costs and gross margin information.

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Results of Operations

Hudson Americas(reported currency)

Revenue

	Three Months Ended March 31,
	2016		2015		Change in amount			Change in %
$ in millions	As reported		As reported
Hudson Americas
Revenue	$	3.8	$	11.0	$	(7.1	)	(65.0	)%

For the three months ended March 31,2016, temporary contracting revenue decreased $7.7 million, or 95.5%, as compared to the same period in 2015. The decrease in temporary contracting revenue was directly attributable to the divestiture of the Company's US IT business in June 2015. For the three months ended March 31,2016, permanent recruitment revenue increased $0.5 million, or 18.1%, as a result of continued growth in RPO, as compared to the same period in 2015.

Gross Margin

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			As reported
Hudson Americas
Gross margin	$	3.3		$	4.6		$	(1.3	)	(27.7	)%
Gross margin as a percentage of revenue	87.1		%	42.1		%	N/A			N/A
Temporary contracting gross margin as a percentage of temporary contracting revenue	12.3		%	22.3		%	N/A			N/A

For the three months ended March 31,2016, temporary contracting gross margin decreased $1.7 million, or 97.5%, as compared to the same period in 2015. Temporary contracting gross margin decreased due to the divestiture of the Company's US IT business in June 2015. Permanent recruitment gross margin increased $0.5 million, or 16.3%, as a result of continued growth in RPO, as compared to the same period in 2015.

SG&A and Non-Op 

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			As reported
Hudson Americas
SG&A and Non-Op	$	3.2		$	5.8		$	(2.6	)	(45.0	)%
SG&A and Non-Op as a percentage of revenue	83.3		%	52.9		%	N/A			N/A

For the three months ended March 31,2016, SG&A and Non-Op decreased $2.6 million, or 45.0%, as compared to the same periods in 2015 due to lower sales and administrative costs and corporate expenses allocated to the Hudson Americas business as a result of the prior year divestiture of the US IT business and lower support costs.

Business Reorganization Expenses

For the three months ended March 31,2016, business reorganization expenses were approximately $0.0 million, as compared to $0.4 million for the same period in 2015.

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Operating Income and EBITDA

	Three Months Ended March 31,
	2016			2015			Change in amount		Change in %
$ in millions	As reported			As reported
Hudson Americas
Operating income (loss)	$	0.2		$	(1.4	)	$	1.6	(114.3	)%
EBITDA (loss)	$	0.2		$	(1.6	)	$	1.8	(112.5	)%
EBITDA (loss) as a percentage of revenue	4.2		%	(14.8		)%	N/A		N/A

For the three months ended March 31,2016, EBITDA was $0.2 million, or 4.2% of revenue, as compared to EBITDA loss of $1.6 million, or 14.8% of revenue, for the same period in 2015.

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Hudson Asia Pacific(constant currency)

Revenue

	Three Months Ended March 31,
	2016		2015		Change in amount		Change in %
$ in millions	As reported		Constant currency
Hudson Asia Pacific
Revenue	$	51.1	$	49.5	$	1.6	3.2	%

For the three months ended March 31,2016, temporary contracting revenue increased $2.7 million, or 8.3%, as compared to the same period in 2015. For the three months ended March 31,2016, permanent recruitment revenue decreased $0.7 million, or 4.9%, as compared to the same period in 2015.

In Australia, revenue increased $2.8 million, or 7.7%, for the three months ended March 31,2016, as compared to the same period in 2015. The increase was primarily in temporary contracting revenue, which increased $2.3 million, or 8.3%, for the three months ended March 31,2016, as compared to the same period in 2015. The increases in temporary contracting revenue for the three months ended March 31,2016 were in the Company's IT, technical and engineering and public sector practices partially offset by declines in financial services and sales and marketing practices and RPO. The decline in RPO was due mainly to the end of a large, high-volume, low-margin RPO contracting project in 2015.

In Asia, revenue decreased $1.6 million, or 21.2%, for the three months ended March 31,2016, as compared to the same period in 2015. The decrease in Asia was primarily in China.

Gross Margin

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			Constant currency
Hudson Asia Pacific
Gross margin	$	18.8		$	19.7		$	(0.9	)	(4.5	)%
Gross margin as a percentage of revenue	36.8		%	39.7		%	N/A			N/A
Temporary contracting gross margin as a percentage of temporary contracting revenue	12.2		%	12.8		%	N/A			N/A

For the three months ended March 31,2016, permanent recruitment and talent management gross margin decreased $0.6 million and $0.3 million, or 4.9% and 14.4%, as compared to the same period in 2015. The declines were partially offset by an increase in temporary contracting gross margin for the three months ended March 31,2016, of $0.1 million or 3.2%, as compared to the same period in  2015.

In Australia, gross margin increased $0.6 million, or 5.8% for the three months ended March 31,2016, as compared to the same period in 2015. The increase was primarily in permanent recruitment increasing $0.9 million, or 16.7%, for the three months ended March 31,2016, as compared to the same period in 2015.

In Asia, gross margin declined $1.6 million, or 22.1%, for the three months ended March 31,2016, as compared to the same period in 2015. The decrease in Asia was primarily in China.

Total gross margin as a percentage of revenue was 36.8% for the three months ended March 31,2016, as compared to 39.7% for the same period in 2015. The decrease in total gross margin as a percentage of revenue for the three months ended March 31, 2016 resulted from an increase in the percentage of lower margin temporary contracting revenue compared to total revenue and a decline in the temporary contracting gross margin as a percentage of temporary contract revenue as compared to the same period in 2015.

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SG&A and Non-Op

	Three Months Ended March 31,
	2016			2015			Change in amount		Change in %
$ in millions	As reported			Constant currency
Hudson Asia Pacific
SG&A and Non-Op	$	19.7		$	18.6		$	1.1	5.9	%
SG&A and Non-Op as a percentage of revenue	38.7		%	37.7		%	N/A		N/A

For the three months ended March 31, 2016, SG&A and Non-Op increased $1.1 million, or 5.9%, as compared to the same period in 2015. The increase was primarily due to higher headcount as a result of investment in additional fee earners in the region, higher proportional corporate administrative charges and foreign currency losses.

Business Reorganization Expenses

For the three months ended March 31,2016, business reorganization expenses were approximately $0.2 million, as compared to $0.0 million for the same period in 2015. Business reorganization expenses in the current year were primarily for severance costs.

Operating Income and EBITDA

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			Constant currency
Hudson Asia Pacific
Operating income (loss)	$	(0.8	)	$	0.4		$	(1.3	)	(a)
EBITDA (loss)	$	(1.2	)	$	1.0		$	(2.2	)	(a)
EBITDA (loss) as a percentage of revenue	(2.4		)%	2.0		%	N/A			N/A

(a) Information was not provided because the Company did not consider the change in percentage a meaningful measure for the periods in comparison.

For the three months ended March 31,2016, EBITDA loss was $1.2 million, or 2.4% of revenue, as compared to EBITDA of $1.0 million, or 2.0% of revenue, for the same period in 2015. The decrease in EBITDA for the three months ended March 31,2016 was principally due to the decrease in gross margin and the increases in SG&A and No-Op and business reorganization expenses.

For the three months ended March 31,2016, operating loss was $0.8 million, as compared to operating income of $0.4 million for the same period in 2015. The difference between operating income (loss) and EBITDA (loss) for the three months ended March 31,2016 and 2015 was principally due to corporate management fees, foreign currency gains and losses and depreciation.

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Hudson Europe(constant currency)

Revenue

	Three Months Ended March 31,
	2016		2015		Change in amount			Change in %
$ in millions	As reported		Constant currency
Hudson Europe
Revenue	$	46.3	$	57.7	$	(11.4	)	(19.8	)%

For the three months ended March 31,2016, temporary contracting revenue and permanent recruitment revenue decreased $11.1 million and $0.3 million, or 27.2% and 2.4%, respectively, as compared to the same period in 2015.

In the U.K., revenue for the three months ended March 31,2016 decreased by $2.1 million, or 5.7%, to $34.2 million, from $36.3 million for the same period in 2015. For the three months ended March 31,2016, the decrease in the U.K. was driven by declines in permanent recruitment and temporary contracting revenues of $0.3 million and $1.9 million, or 5.7% and 6.1%, respectively, as compared to the same period in 2015. The declines in recruitment revenue for the three months ended March 31,2016 as compared to the same period in 2015 were partially offset by an increase in RPO revenue.

In Continental Europe, total revenue was $12.1 million for the three months ended March 31,2016, as compared to $21.5 million for the same period in 2015, a decrease of $9.3 million, or 43.5%. The majority of the revenue decline in Continental Europe was a result of the prior year divestitures, resulting in a decline in revenue for the three months ended March 31,2016, of $9.9 million, as compared to the same period in 2015. Excluding the decline from prior year divestitures, revenue in Continental Europe, increased $0.5 million, or 4.4%, for the three months ended March 31,2016, as compared to the same period in 2015. For the three months ended March 31,2016 revenue in Belgium increased $0.9 million or 11.4%, offset by declines in Spain and France of $0.2 million and $0.1 million, respectively, as compared to the same period in 2015.

Gross Margin

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			Constant currency
Hudson Europe
Gross margin	$	19.2		$	21.6		$	(2.5	)	(11.5	)%
Gross margin as a percentage of revenue	41.3		%	37.5		%	N/A			N/A
Temporary contracting gross margin as a percentage of temporary contracting revenue	14.2		%	15.4		%	N/A			N/A

For the three months ended March 31,2016, contracting and permanent recruitment gross margins decreased $2.1 million and $0.3 million, or 33.3% and 2.9%, respectively, as compared to the same period in 2015. In the U.K. and Continental Europe, total gross margin decreased $0.5 million and $2.0 million, or 5.2% and 16.7%, respectively, as compared to 2015. In the U.K., for the three months ended March 31,2016, contracting and permanent recruitment gross margins declined $0.2 million and $0.3 million, or 4.8% and 6.4%, respectively, as compared to 2015. The decline in the U.K. was driven by lower permanent recruitment revenue, partially offset by an increase in RPO revenue.

The gross margin decline in Continental Europe was a result of the sale of the Netherlands business effective April 30, 2015. In the Netherlands, total gross margin for the three months ended March 31,2016 decreased $2.1 million, or 100.0%, as compared to 2015. Also contributing to the decrease in gross margin for the three months ended March 31,2016 were declines in France and Spain of $0.1 million and $0.2 million, or 6.0% and 16.8%, respectively, as compared to 2015. The declines were partially offset by an increase in Belgium gross margin of  $0.7 million, or 11.6%, for the three months ended March 31, 2016, as compared to the same period in 2015.

For the three months ended March 31,2016, gross margin, as a percentage of revenue, was 41.3%, as compared to 37.5% for 2015. The increase in gross margin, as a percentage of revenue, resulted from an increase in the relative mix of higher margin permanent recruitment revenue. The contracting gross margin, as a percentage of revenue, was 14.2%, as

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compared to 15.4% in 2015. The decline was a result of the impact of selling the Netherlands contracting business, which earned a higher than average contracting gross margin as a percentage of revenue.

SG&A and Non-Op

	Three Months Ended March 31,
	2016			2015			Change in amount			Change in %
$ in millions	As reported			Constant currency
Hudson Europe
SG&A and Non-Op	$	19.1		$	22.8		$	(3.8	)	(16.5	)%
SG&A and Non-Op as a percentage of revenue	41.1		%	39.6		%	N/A			N/A

The sale of the Netherlands business resulted in a reduction in SG&A and Non-Op expenses for the three months ended March 31,2016, of $1.9 million, as compared to the same period in 2015. In the U.K., lower gross margin resulted in a reduction in employee compensation expense in the three months ended March 31,2016, as compared to the same period in 2015. In addition, actions taken to streamline business processes in 2015, including real estate, back office support functions and reduced corporate management fees resulted in lower SG&A and Non-Op for the three months ended March 31,2016 as compared to the same period in 2015.

For the three months ended March 31,2016, SG&A and Non-Op, as a percentage of revenue, was 41.1%, as compared to 39.6% for the same period in 2015. The increase in SG&A and Non-Op, as a percentage of revenue, for the three months ended March 31, 2016 was primarily due to lower revenue as compared to the same periods in 2015.

Business Reorganization Expenses

For the three months ended March 31,2016, business reorganization expenses were $0.5 million, as compared to $0.8 million for the same period in 2015. The business reorganization expenses incurred for the three months ended March 31, 2016 were primarily related to additional lease exit charges in France and changes in lease exit cost estimates in the U.K.

Operating Income and EBITDA

	Three Months Ended March 31,
	2016			2015			Change in amount		Change in %
$ in millions	As reported			Constant currency
Hudson Europe
Operating income (loss)	$	(0.2	)	$	(1.0	)	$	0.8	76.3	%
EBITDA (loss)	$	(0.3	)	$	(2.0	)	$	1.7	83.5	%
EBITDA (loss) as a percentage of revenue	(0.7		)%	(3.5		)%	N/A		N/A

For the three months ended March 31,2016, EBITDA loss was $0.3 million, or 0.7% of revenue, as compared to EBITDA loss of $2.0 million, or 3.5% of revenue, for the same period in 2015. The decrease in EBITDA loss for the three months ended March 31,2016, as compared to the same periods in 2015, was principally due to lower business reorganization and SG&A and Non-Op expenses partially offset by a decline in gross margin.

For the three months ended March 31,2016, operating loss was $0.2 million, as compared to operating loss of $1.0 million for the same period in 2015. The differences between operating loss and EBITDA loss for the three months ended March 31,2016 and 2015 were principally due to corporate management fees and depreciation.

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The following are discussed in reported currency

Corporate Expenses, Net of Corporate Management Fee Allocations

Corporate expenses were $1.8 million for the three months ended March 31,2016, as compared to $2.6 million for the same period in 2015, a decrease of $0.8 million. The decline for the three months ended March 31,2016 was due to cost savings associated with reorganization efforts partially offset by lower corporate allocations to our business operations.

Depreciation and Amortization Expense

Depreciation and amortization expense was $0.7 million for the three months ended March 31,2016, as compared to $1.1 million for the same period in 2015, a decrease of $0.4 million, or 38.1%. The decrease was due to lower level of capital expenditures and foreign currency translation differences of $0.1 million in 2016 as compared to 2015.

Interest Expense, Net of Interest Income

Interest expense remained relatively flat at $0.1 million for the three months ended March 31,2016 and 2015.

Provision for (Benefit from) Income Taxes

The benefit from income taxes for the three months ended March 31,2016 was $0.3 million on $3.9 million of pre-tax loss from continuing operations, as compared to a benefit from income tax of $0.1 million on $6.8 million of pre-tax loss from continuing operations for the same period in 2015. The effective tax rate for the three months ended March 31,2016 was 8.4%, as compared to 1.9% for the same period in 2015. For the three months ended March 31,2016 and 2015, the effective tax rate differed from the U.S. Federal statutory rate of 35% primarily due to the inability of the Company to recognize tax benefits on certain losses until positive earnings are achieved in the U.S. and certain other foreign jurisdictions, non-deductible expenses, and variations from the U.S. tax rate in foreign jurisdictions.

Net Income (Loss)

Net loss was $3.5 million for the three months ended March 31,2016, as compared to net loss of $6.8 million for the same period in 2015, a decrease in net loss of $3.4 million. Basic and diluted loss per share were $0.10 for the three months ended March 31,2016, as compared to basic and diluted loss per share of $0.21 for the same period in 2015.

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Liquidity and Capital Resources

As of March 31, 2016, cash and cash equivalents totaled $31.9 million, as compared to $37.7 million as of December 31, 2015. The following table summarizes the Company's cash flow activities for the three months ended March 31,2016 and 2015:

	For the Three Months Ended March 31,
$ in millions	2016			2015
Net cash provided by (used in) operating activities	$	(5.8	)	$	(18.4	)
Net cash provided by (used in) investing activities	(0.6		)	(0.7		)
Net cash provided by (used in) financing activities	0.4			—
Effect of exchange rates on cash and cash equivalents	0.3			(1.0		)
Net increase (decrease) in cash and cash equivalents	$	(5.7	)	$	(20.1	)

Cash Flows from Operating Activities

For the three months ended March 31,2016, net cash used in operating activities was $5.8 million, as compared to $18.4 million of net cash used in operating activities for the same period in 2015, a decrease in net cash used in operating activities of $12.5 million. The decline in net cash used in operating activities resulted principally from a decrease in working capital requirements as a result of the prior year divestitures and fluctuations in foreign currency. For the three months ended March 31,2016, net cash used in operating activities from discontinued operations was $0.2 million, as compared to $0.4 million of net cash flows provided by discontinued operations for the same period in 2015.

Cash Flows from Investing Activities

For the three months ended March 31,2016, net cash used in investing activities was $0.6 million and remained relatively stable as compared to the same period in 2015.

Cash Flows from Financing Activities

For the three months ended March 31,2016, net cash provided by financing activities was $0.4 million, as compared to net cash provided by financing activities of $0.0 million for the same period in 2015, an increase in net cash provided by financing activities of $0.4 million. The increase in net cash provided by financing activities was primarily attributable to an increase in net borrowings offset by the payment of a cash dividend in the three months ended March 31,2016, as compared to the same period in 2015.

During the three months ended March 31, 2016, the Company paid a cash dividend of $1.7 million, or $0.05 per share and on April 27, 2016 has declared another cash dividend of $0.05 per share payable on June 24, 2016 to shareholders of record as of June 14, 2016. The Company currently expects to continue to declare and pay quarterly dividends of an amount similar to the March 2016 dividend of $0.05 per share. However, the declaration and payment of future dividends are at the discretion of the Board of Directors and will depend on the Company's financial condition, capital requirements, earnings and other factors deemed relevant by its Board of Directors.

Credit Agreements

Receivables Finance Agreement with Lloyds Bank Commercial Finance Limited and Lloyds Bank PLC

On August 1, 2014, the Company’s U.K. subsidiary ("U.K. Borrower") entered into a receivables finance agreement for an asset-based lending funding facility (the "Lloyds Agreement") with Lloyds Bank PLC and Lloyds Bank Commercial Finance Limited (together, "Lloyds"). The Lloyds Agreement provides the U.K. Borrower with the ability to borrow up to $21.5 million (£15.0 million). Extensions of credit are based on a percentage of the eligible accounts receivable less required reserves from the Company's U.K. operations. The initial term is two years with renewal periods every three months thereafter. Borrowings under this facility are secured by substantially all of the assets of the U.K. Borrower.

The credit facility under the Lloyds Agreement contains two tranches. The first tranche is a revolving facility based on the billed temporary contracting and permanent recruitment activities in the U.K. operations ("Lloyds Tranche A"). The borrowing limit of Lloyds Tranche A is $17.2 million (£12.0 million) based on 83% of eligible billed temporary contracting and permanent recruitment receivables. The second tranche is a revolving facility that is based on the unbilled work-in-progress (as defined under the receivables finance agreement) activities in the Company's U.K. operations ("Lloyds Tranche B"). The

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borrowing limit of Lloyds Tranche B is $4.3 million (£3.0 million) based on 75% of eligible work-in-progress from temporary contracting and 25% of eligible work-in-progress from permanent recruitment activities. For both tranches, borrowings may be made with an interest rate based on a base rate as determined by Lloyds Bank PLC, based on the Bank of England base rate, plus 1.75%.

The Lloyds Agreement contains various restrictions and covenants including (1) that true credit note dilution may not exceed 5%, measured at audit on a regular basis; (2) debt turn may not exceed 55 days over a three month rolling period; (3) dividends by the U.K. Borrower to the Company are restricted to the value of post-tax profits; and (4) at the end of each month, there must be a minimum excess availability of $2.9 million (£2.0 million).

The details of the Lloyds Agreement as of March 31, 2016 were as follows:

$ in millions	March 31, 2016
Borrowing capacity	$	6.4
Less: outstanding borrowing	(0.5		)
Additional borrowing availability	$	5.9
Interest rates on outstanding borrowing	2.25		%

The Company was in compliance with all financial covenants under the Lloyds Agreement as of March 31, 2016.

Loan and Security Agreement with Siena Lending Group LLC

Upon the sale of the US IT business, the Company exercised its right to terminate its loan and security agreement with Siena Lending Group LLC ("Siena"). The Company paid Siena a termination fee of $0.2 million recognized as a reduction to the gain on sale of the US IT business and $0.4 million of cash to secure an outstanding letter of credit for a real estate lease. Siena will return the restricted cash to the Company once the outstanding letter of credit is returned to Siena.

Facility Agreement with National Australia Bank Limited

On October 30, 2015, Hudson Global Resources (Aust) Pty Limited ("Hudson Australia") and Hudson Global Resources (NZ) Limited ("Hudson New Zealand"), both subsidiaries of the Company, entered into a Finance Agreement, dated as of October 27, 2015 (the "Finance Agreement"), with National Australia Bank Limited ("NAB"), a NAB Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "Australian Receivables Agreement"), with NAB and a BNZ Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "New Zealand Receivables Agreement"), with Bank of New Zealand ("BNZ").

The Finance Agreement provides a bank guarantee facility of up to $2.3 million (AUD 3.0 million) for Hudson Australia and Hudson New Zealand. The Finance Agreement matures and becomes due and payable on October 27, 2018. A fee equal to 1.5% per annum will be charged on each bank guarantee issued under the Finance Agreement. The Finance Agreement bears a fee, payable semiannually in arrears, equal to 0.3% per annum of NAB’s commitment under the Finance Agreement.

The Australian Receivables Agreement provides a receivables facility of up to $19.1 million (AUD 25.0 million) for Hudson Australia, which is based on an agreed percentage of eligible accounts receivable, and of which up to $3.1 million (AUD 4.0 million) may be used to support the working capital requirements of operations in China, Hong Kong and Singapore. The Australian Receivables Agreement does not have a stated maturity date and can be terminated by Hudson Australia or NAB upon 90 days written notice. Borrowings under the Australian Receivables Agreement may be made with an interest rate based on a market rate plus a margin of 1.5% per annum. The Australian Receivable Agreement bears a fee, payable monthly in advance, equal to $5 thousand (AUD 6 thousand) per month.

The New Zealand Receivables Agreement provides a receivables facility of up to $3.5 million (NZD 5.0 million) for Hudson New Zealand, which is based on an agreed percentage of eligible accounts receivable. The New Zealand Receivables Agreement does not have a stated maturity date and can be terminated by Hudson New Zealand or BNZ upon 90 days written notice. Borrowings under the New Zealand Receivables Agreement may be made with an interest rate based on a market rate. The New Zealand Receivables Agreement bears a fee, payable monthly in advance, equal to $1 thousand (NZD 1 thousand) per month.

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The details of the NAB Finance Agreement as of March 31, 2016 were as follows:

$ in millions	March 31, 2016
Finance Agreement:
Financial guarantee capacity	$	2.3
Less: outstanding financial guarantees	(1.9		)
Additional availability for financial guarantees	$	0.4
Interest rates on outstanding financial guarantees	1.80		%
Australian Receivables Agreement:
Borrowing capacity	$	14.5
Less: outstanding borrowing	(5.2		)
Additional borrowing availability	$	9.3
Interest rates on outstanding borrowing	3.65		%
New Zealand Receivables Agreement:
Borrowing capacity	$	1.8
Less: outstanding borrowing	(0.1		)
Additional borrowing availability	$	1.8
Interest rates on outstanding borrowing	4.60		%

Amounts owing under the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement are secured by substantially all of the assets of Hudson Australia and Hudson New Zealand. Each of the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement contains various restrictions and covenants applicable to Hudson Australia and Hudson New Zealand, including: a requirement that Hudson Australia and Hudson New Zealand maintain (1) a minimum Fixed Charge Coverage Ratio (as defined in the NAB Facility Agreement) of 1.50x as of the last day of each calendar quarter; and (2) a minimum Receivables Ratio (as defined by the NAB Facility Agreement) of 1.20x.

The Company was in compliance with all financial covenants under the NAB Facility Agreement as of March 31, 2016.

Other Credit Agreements

The Company also has lending arrangements with local banks through its subsidiaries in Belgium and Singapore. The Belgium subsidiary has a $1.1 million (€1.0 million) overdraft facility. Borrowings under the Belgium lending arrangements may be made with an interest rate based on the one-month EURIBOR plus a margin, and was 2.75% as of March 31, 2016. The lending arrangement in Belgium has no expiration date and can be terminated with a 15-day notice period. In Singapore, the Company’s subsidiary can borrow up to $0.1 million (SGD 0.2 million) for working capital purposes. Interest on borrowings under the Singapore overdraft facility is based on the Singapore Prime Rate plus a margin of 1.75%, and it was 6.00% on March 31, 2016. The Singapore overdraft facility expires annually each August, but can be renewed for one-year periods at that time. There were no outstanding borrowings under the Belgium and Singapore lending agreements as of March 31, 2016.

The average aggregate monthly outstanding borrowings for the credit agreements above was $5.8 million for the three months ended March 31,2016. The weighted average interest rate on all outstanding borrowings for the three months ended March 31,2016 was 3.59%.

The Company continues to use the aforementioned credit to support its ongoing global working capital requirements, capital expenditures and other corporate purposes and to support letters of credit. Letters of credit and bank guarantees are used primarily to support office leases.

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Liquidity Outlook

As of March 31, 2016, the Company had cash and cash equivalents on hand of $31.9 million supplemented by additional borrowing availability of $18.3 million under the Lloyds Agreement, the NAB Facility Agreement and other lending arrangements in Belgium and Singapore. The Company believes that it has sufficient liquidity to satisfy its needs through at least the next 12 months, based on the Company's total liquidity as of March 31, 2016. The Company's near-term cash requirements during 2016 are primarily related to funding operations, restructuring actions, investing in capital expenditures, repurchasing shares and paying cash dividends. For the full year 2016, the Company expects to make capital expenditures of approximately $2.5 million to $3.5 million and payments in connection with current restructuring actions of $3.0 million to $4.0 million.

As of March 31, 2016, $10.8 million of the Company's cash and cash equivalents noted above were held in the U.S. and the remainder were held internationally, primarily in the U.K. ($7.9 million), Belgium ($4.9 million), Mainland China ($2.6 million), Spain ($1.8 million), Australia ($0.9 million), Hong Kong ($0.8 million) and New Zealand ($0.6 million). The majority of the Company's offshore cash is available to it as a source of funds, net of any tax obligations or assessments. Unrepatriated cumulative earnings of certain foreign subsidiaries are considered to be invested indefinitely outside of the U.S., except where the Company is able to repatriate these earnings to the United States without a material incremental tax provision. In managing its day-to-day liquidity and its capital structure, the Company does not rely on the unrepatriated earnings as a source of funds. The Company has not provided for U.S. Federal income or foreign withholding taxes on these undistributed foreign earnings because a distribution of these foreign earnings with material incremental tax provision is unlikely to occur in the foreseeable future. It is not practicable to determine the amount of tax associated with such undistributed earnings.

The Company believes that future external market conditions remain uncertain, particularly access to credit, rates of near-term projected economic growth and levels of unemployment in the markets in which the Company operates. Due to these uncertain external market conditions, the Company cannot provide assurance that its actual cash requirements will not be greater in the future than those currently expected, especially if market conditions deteriorate substantially. If sources of liquidity are not available or if the Company cannot generate sufficient cash flow from operations, the Company could be required to obtain additional sources of funds through additional operating improvements, capital market transactions, asset sales or financing from third parties, or a combination of those sources. The Company cannot provide assurance that these additional sources of funds will be available or, if available, would have reasonable terms.

Contingencies

From time to time in the ordinary course of business, the Company is subject to compliance audits by federal, state, local and foreign government regulatory, tax and other authorities relating to a variety of regulations, including wage and hour laws, unemployment taxes, workers' compensation, immigration, and income, value-added and sales taxes. The Company is also subject to, from time to time in the ordinary course of business, various claims, lawsuits and other complaints from, for example, clients, candidates, suppliers, landlords for both leased and subleased properties, former and current employees, and regulators or tax authorities. In addition, see Note 14 for a description of a dispute between the Company and its former Chairman and Chief Executive Officer for amounts potentially owed under his employment agreement. Periodic events and management actions such as business reorganization initiatives can change the number and type of audits, claims, lawsuits, contract disputes or complaints asserted against the Company. Events can also change the likelihood of assertion and the behavior of third parties to reach resolution regarding such matters.

The economic circumstances in the recent past have given rise to many news reports and bulletins from clients, tax authorities and other parties about changes in their procedures for audits, payment, plans to challenge existing contracts and other such matters aimed at being more aggressive in the resolution of such matters in their own favor. The Company believes that it has appropriate procedures in place for identifying and communicating any matters of this type, whether asserted or likely to be asserted, and it evaluates its liabilities in light of the prevailing circumstances. Changes in the behavior of third parties could cause the Company to change its view of the likelihood of a claim and what might constitute a trend. Employment laws vary in the markets in which we operate, and in some cases, employees and former employees have extended periods during which they may bring claims against the Company.

For matters that have reached the threshold of probable and estimable, the Company has established reserves for legal, regulatory and other contingent liabilities. The Company’s reserves were $0.2 million and $0.1 million as of March 31, 2016 and December 31, 2015, respectively. Although the outcome of these matters cannot be determined, the Company believes that none of the currently pending matters, individually or in the aggregate, will have a material adverse effect on the Company’s financial condition, results of operations or liquidity.

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Recent Accounting Pronouncements

See Note 3 to the Condensed Consolidated Financial Statements included in Item 1 of this Form 10-Q for a full description of relevant recent accounting pronouncements, including the respective expected dates of adoption.

Critical Accounting Policies

See "Critical Accounting Policies" under Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on March 3, 2016 and incorporated by reference herein. There were no changes to the Company’s critical accounting policies during the three months ended March 31, 2016.

FORWARD-LOOKING STATEMENTS

This Form 10-Q contains statements that the Company believes to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this Form 10-Q, including statements regarding the Company’s future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, (1) global economic fluctuations, (2) the Company's ability to successfully execute its strategic initiatives, (3) risks related to fluctuations in the Company's operating results from quarter to quarter, (4) the ability of clients to terminate their relationship with the Company at any time, (5) competition in the Company's markets, (6) the negative cash flows and operating losses that the Company has experienced in recent periods and may experience from time to time in the future, (7) restrictions on the Company's operating flexibility due to the terms of its credit facilities, (8) risks associated with the Company’s investment strategy, (9) risks related to international operations, including foreign currency fluctuations, (10) the Company's dependence on key management personnel, (11) the Company's ability to attract and retain highly-skilled professionals, (12) the Company's ability to collect its accounts receivable, (13) the Company's ability to achieve anticipated cost savings through the Company's cost reduction initiatives, (14) the Company's heavy reliance on information systems and the impact of potentially losing or failing to develop technology, (15) risks related to providing uninterrupted service to clients, (16) the Company's exposure to employment-related claims from clients, employers and regulatory authorities and limits on related insurance coverage, (17) the Company's ability to utilize net operating loss carry-forwards, (18) volatility of the Company's stock price, and (19) the impact of government regulations. These forward-looking statements speak only as of the date of this Form 10-Q. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company conducts operations in various countries and faces both translation and transaction risks related to foreign currency exchange. For the three months ended March 31,2016, the Company earned approximately 92% of its gross margin outside the U.S., and it collected payments in local currency and paid related operating expenses in such corresponding local currency. Revenues and expenses in foreign currencies translate into higher or lower revenues and expenses in U.S. dollars as the U.S. dollar weakens or strengthens against other currencies. Therefore, changes in exchange rates may affect our consolidated revenues and expenses (as expressed in U.S. dollars) from foreign operations.

Amounts invested in our foreign operations are translated into U.S. dollars at the exchange rates in effect at the balance sheet date. The resulting translation adjustments are recorded as a component of accumulated other comprehensive income in the stockholders’ equity section of the Condensed Consolidated Balance Sheets. The translation of the foreign currency into U.S. dollars is reflected as a component of stockholders' equity and does not impact our reported net income.

As more fully described in Item 2 "Management’s Discussion and Analysis of Financial Condition and Results of Operations," the Company has credit agreements with Lloyds Bank PLC and Lloyds Bank Commercial Finance Limited, National Australia Bank Limited and other credit agreements with lenders in Belgium and Singapore. The Company does not hedge the interest risk on borrowings under the credit agreements, and accordingly, it is exposed to interest rate risk on the borrowings under such credit agreements. Based on the Company's annual average borrowings in the current year, a 1% increase or decrease in interest rates on the Company's borrowings would not have a material impact on the Company's earnings.

ITEM 4.    CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has conducted an evaluation of the design and operation of the Company’s disclosure controls and procedures, as such term is defined under Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2016.

Changes in internal control over financial reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the three months ended March 31, 2016 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II - OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

The Company is involved in various legal proceedings that are incidental to the conduct of its business. The Company is not involved in any pending legal proceeding that it believes would reasonably be expected to have a material adverse effect on its financial condition or results of operations.

ITEM 1A.    RISK FACTORS

 As of March 31, 2016, there have not been any material changes to the information set forth in Item 1A. "Risk Factors" disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

ITEM 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table summarizes purchases of common stock by the Company during the quarter ended March 31, 2016.

Period	Total Number  of Shares  Purchased (b)	Average Price Paid per Share		Total Number of Shares  Purchased as Part of Publicly Announced  Plans or Programs	Approximate Dollar  Value of Shares that May Yet Be Purchased Under the Plans or Programs (a)
January 1, 2016 - January 31, 2016	—	$	—	139,138	$	8,222,902
February 1, 2016 - February 29, 2016	—	—		89,559	7,981,152
March 1, 2016 - March 31, 2016	—	—		137,416	7,628,378
Total	—	$	—	366,113	$	7,628,378

(a) On July 30, 2015, the Company announced that its Board of Directors authorization the repurchase of up to $10.0 million of the Company's common stock. The authorization does not expire. See Note 17 for further details. As of March 31, 2016, the Company had repurchased 893,747 shares for a total cost of approximately $2.4 million under this authorization. From time to time, the Company may enter into a Rule 10b5-1 trading plan for purposes of repurchasing common stock under this authorization.

(b) Consisted of shares of restricted stock withheld from employees upon the vesting of such shares to satisfy employees' income tax withholding requirements.

ITEM 3.    DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.    MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

None.

ITEM 6.    EXHIBITS

 The exhibits to this Form 10-Q are listed in the Exhibit Index included elsewhere herein. 

- 45 -

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		HUDSON GLOBAL, INC.
		(Registrant)
		By:	/s/ STEPHEN A. NOLAN
			Stephen A. Nolan
			Chief Executive Officer
			(Principal Executive Officer)
Dated:	April 28, 2016
		By:	/s/ PATRICK LYONS
			Patrick Lyons
			Chief Financial Officer and Chief Accounting Officer
			(Principal Financial Officer and Principal Accounting Officer)
Dated:	April 28, 2016

- 46 -

HUDSON GLOBAL, INC.

FORM 10-Q

EXHIBIT INDEX

Exhibit No.	Description
10.1	Form of Hudson Global, Inc. 2009 Incentive Stock and Awards Plan Restricted Stock Unit Award Agreement.
31.1	Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act.
31.2	Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act.
32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350.
32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350.
101	The following materials from Hudson Global, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 are filed herewith, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations for the three months ended March 31, 2016 and 2015, (ii) the Condensed Consolidated Statement of Other Comprehensive Income (Loss) for the three months ended March 31, 2016 and 2015, (iii) the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, (iv) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and 2015, (v) the Condensed Consolidated Statement of Stockholders’ Equity for the three months ended March 31, 2016, and (vi) Notes to Condensed Consolidated Financial Statements.

- 47 -

EX-10.1

Exhibit 10.1

HUDSON GLOBAL, INC.

RESTRICTED STOCK UNIT AWARD AGREEMENT

RESTRICTED STOCK UNIT AWARD AGREEMENT (“Agreement”) made as of the [DAY] day of [MONTH], [YEAR] and effective as of the seventh calendar day following the date of the [QUARTER] quarter [YEAR] earnings release of the Company (the “Grant Date”), by and between HUDSON GLOBAL, INC., a Delaware corporation (the “Company”) and [NAME] (the “Grantee”).

W I T N E S S E T H:

WHEREAS, pursuant to the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated (the “Plan”), the Company desires to grant to the Grantee and the Grantee desires to accept an award of restricted stock units representing the right to receive shares of common stock, $.001 par value, of the Company (the “Common Stock”) upon the terms and conditions set forth in this Agreement.

NOW, THEREFORE, the parties hereto agree as follows:

1.Award. Subject to the terms and conditions set forth herein, the Company hereby awards the Grantee [NUMBER OF RESTRICTED STOCK UNITS] restricted stock units (the “Restricted Stock Units,” or the “Units”).

2.Restrictions; Vesting. Except as otherwise provided herein or in the Plan, the Restricted Stock Units may not be sold, transferred, pledged, encumbered, assigned or otherwise alienated or hypothecated. The Restricted Stock Units will vest upon satisfaction of [both] the [performance vesting conditions and] the service vesting conditions set forth below. [The performance vesting conditions with respect to the Restricted Stock Units shall be satisfied as follows]:

[VESTINGCONDITIONS]

3.Settlement of Restricted Stock Units. Vested Restricted Stock Units shall be settled by the delivery to the Grantee or a designated brokerage firm of one share of Common Stock per vested Restricted Stock Unit as soon as reasonably practicable following the vesting of such Restricted Stock Units, and in all events no later than March 15 of the year following the year of vesting (unless delivery is deferred pursuant to a nonqualified deferred compensation plan in accordance with the requirements of Section 409A of the Code), subject to applicable withholding. In the event of the Grantee’s death before the Company has distributed shares in settlement of vested Restricted Stock Units, the Company will issue the shares to the Grantee’s estate. [To the extent required in order to receive favorable tax treatment under applicable law, the shares of Common Stock issued in settlement of vested Restricted Stock Units may not be sold or otherwise transferred for two years.]

4.Tax Withholding. Notwithstanding anything herein to the contrary, shares of Common Stock shall not be delivered to the Grantee unless and until the Grantee has delivered to the Executive Vice President, Human Resources of the Company (or such other executive officer of the Company performing a similar function), at its corporate headquarters in New York, New York, such cash payment,

if any, deemed necessary by the Company to enable it to satisfy any federal, foreign or other tax withholding obligations with respect to such shares or the Restricted Stock Units that have vested (the “Tax Amount”) (unless other arrangements acceptable to the Company in its sole discretion have been made). Notwithstanding anything herein to the contrary, the Company may (but shall not be required to), in its sole discretion, at any time by notice to the Grantee, choose to satisfy its withholding obligation by unilaterally withholding a number of shares of Common Stock otherwise deliverable with respect to vested Restricted Stock Units having a value equal to the minimum Tax Amount the Company is required to withhold. For purposes of the preceding sentence, each share of Common Stock shall be deemed to have a value equal to the average closing price of a share of the Common Stock on the Nasdaq Global Market (or such other U.S. exchange or market on which the Common Stock is then primarily traded) on the five (5) trading days up to and including the date the withholding tax is to be determined. The Company may from time to time change (or provide alternatives to) the method of tax withholding on the Restricted Stock Units granted hereunder by notice to the Grantee, it being understood that from and after such notice the Grantee will be bound by the method (or alternatives) specified in any such notice. The Company (in its sole and absolute discretion) may permit all or part of the Tax Amount to be paid with shares of Common Stock owned by the Grantee, or in installments (together with interest) evidenced by the Grantee’s secured promissory note. In addition, if the Company is required to withhold amounts with respect to the Restricted Stock Units other than as described in the preceding sentences, then the Grantee shall deliver to the Company at the time the Company is obligated to withhold amounts, such amount as the Company requires to meet the statutory withholding obligation under applicable tax laws or regulations, and if the Grantee fails to do so, the Company has the right and authority to deduct or withhold from amounts under this award or other compensation payable to the Grantee an amount sufficient to satisfy its withholding obligations.

5.Termination of Employment. If the Grantee’s employment or service with the Company or its Affiliates is terminated for any reason other than death, including but not limited to by reason of disability, then the Restricted Stock Units that have not yet become fully vested in accordance with Section 2 will automatically be forfeited by the Grantee (or the Grantee’s successors). If the Grantee’s employment terminates by reason of the Grantee’s death, then the Restricted Stock Units that have not yet become fully vested as a result of a service vesting condition contained in Section 2 not being satisfied will automatically become fully vested, but only if and to the extent that the performance vesting conditions contained in Section 2 shall have been achieved on or prior to the date of such termination of employment.

6.No Voting Rights; Dividend Equivalents and Other Distributions.

(a)The Grantee shall not have voting rights with respect to shares of Common Stock subject to the Restricted Stock Units unless and until such shares of Common Stock are reflected as issued and outstanding shares on the Company’s stock ledger following vesting and settlement.

(b)The Grantee shall not be entitled to receive any cash payment equivalent to any dividends or other distributions paid with respect to the shares of Common Stock subject to the Restricted Stock Units unless and until such shares of Common Stock are reflected as issued and outstanding shares on the Company’s stock ledger following vesting and settlement.

(c)Except to the extent otherwise expressly provided in this Agreement, the Grantee shall have, with respect to the Restricted Stock Units, no rights as a holder of Common Stock.

7.Securities Law Restrictions. Notwithstanding anything herein to the contrary, shares of Common Stock shall not be issued hereunder if, in the opinion of counsel to the Company, such issuance

may result in a violation of federal or state securities laws or the securities laws of any other relevant jurisdiction.

8.Change in Control. If, within twelve (12) months following the date of a Change in Control (as defined in the Plan), the Grantee’s employment or service with the Company or its Affiliates is terminated without Cause (as defined below) by the Company or is terminated for Good Reason (as defined below) by the Grantee, then the Restricted Stock Units will fully vest and be settled with shares of Common Stock or, in the Committee’s discretion, be cancelled in exchange for payment of the same consideration to be received by stockholders of the Company for shares of Common Stock in the Change in Control transaction.

(a) Definition of Cause. For purposes of this Agreement, Cause shall be defined as:

i.the willful or negligent failure of the Grantee to perform the Grantee’s duties and obligations in any material respect (other than any failure resulting from Grantee’s disability), which failure is not cured within fifteen (15) days after receipt of written notice thereof, provided that there shall be no obligation to provide any additional written notice if the Grantee’s failure to perform is repeated and the Grantee has previously received one (1) or more written notices;

ii.acts of dishonesty or willful misconduct by the Grantee with respect to the Company;

iii.conviction of a felony or violation of any law involving moral turpitude, dishonesty, disloyalty or fraud, or a pleading of guilty or nolo contendere to such charge;

iv.repeated refusal to perform the reasonable and legal instructions of the Grantee’s supervisors;

v.any material breach of this Agreement; or

vi.failure to confirm compliance with the Company’s Code of Conduct after 10 days’ written notice requesting confirmation.

(b)Definition of Good Reason. The Grantee shall have “Good Reason” for termination of employment in connection with a Change in Control of the Company in the event of:

(i)any breach of this Agreement by the Company, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith that the Company remedies promptly after receipt of notice thereof given by the Grantee;

(ii)any reduction in the Grantee’s base salary, percentage of base salary available as incentive compensation or bonus opportunity or benefits, in each case

relative to those most favorable to the Grantee in effect at any time during the 180-day period prior to the Change in Control;

(iii)the removal of the Grantee from, or any failure to reelect or reappoint the Grantee to, any of the positions held with the Company on the date of the Change in Control or any other positions with the Company to which the Grantee shall thereafter be elected, appointed or assigned, except in the event that such removal or failure to reelect or reappoint relates to the termination by the Company of the Grantee’s employment for Cause or by reason of disability pursuant to the Grantee’s Employment Agreement;

(iv)a good faith determination by the Grantee that there has been a material adverse change, without the Grantee’s written consent, in the Grantee’s working conditions or status with the Company relative to the most favorable working conditions or status in effect during the 180-day period prior to the Change in Control, including but not limited to (A) a significant change in the nature or scope of the Grantee’s authority, powers, functions, duties or responsibilities, or (B) a significant reduction in the level of support services, staff, secretarial and other assistance, office space and accoutrements, but in each case excluding for this purpose an isolated, insubstantial and inadvertent event not occurring in bad faith that the Company remedies within ten (10) days after receipt of notice thereof given by the Grantee;

(v)the relocation of the Grantee’s principal place of employment to a location more than 50 miles from the Grantee’s principal place of employment on the date 180 days prior to the Change in Control; or

(vi)the Company requires the Grantee to travel on Company business 20% in excess of the average number of days per month the Grantee was required to travel during the 180-day period prior to the Change in Control.

9.No Employment Rights. Nothing in this Agreement shall give the Grantee any right to continue in the employment of the Company or any Affiliate, or interfere in any way with the right of the Company or any Affiliate to terminate the employment of the Grantee.

10.Plan Provisions. The provisions of the Plan shall govern if and to the extent that there are inconsistencies between those provisions and the provisions hereof. The Grantee acknowledges receipt of a copy of the Plan prior to the execution of this Agreement. Capitalized terms used in this Agreement but not defined herein shall have the meaning given to them in the Plan.

11.Administration. The Committee will have full power and authority to interpret and apply the provisions of this Agreement and act on behalf of the Company and the Board in connection with this Agreement, and the decision of the Committee as to any matter arising under this Agreement shall be binding and conclusive as to all persons.

12.Binding Effect; Headings. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. The subject headings of Sections of this Agreement are included for the purpose of convenience only and shall not affect the construction or interpretation of any of its provisions. All references in this Agreement to “$” or “dollars” are to United States dollars.

13.Employee Handbook and Arbitration Agreements. As a material inducement to the Company to grant this award of Restricted Stock Units and to enter into this Agreement, the Grantee hereby expressly agrees to (a) comply with and abide by the terms and conditions of, and rules relating to, such Grantee’s employment with the Company or an Affiliate set forth in the applicable employee handbook and (b) be bound by the terms and provisions of any arbitration or similar agreement to which the Grantee is or becomes a party with the Company or an Affiliate.

14.Confidentiality, Non-Solicitation and Work Product Assignment. As a material inducement to the Company to grant this award of Restricted Stock Units and enter into this Agreement, the Grantee hereby expressly agrees to be bound by the following covenants, terms and conditions:

(a)Definition. “Confidential Information” consists of all information or data relating to the business of the Company, including but not limited to, business and financial information; new product development and technological data; personnel information and the identities of employees; the identities of clients and suppliers and prospective clients and suppliers; client lists and potential client lists; development, expansion and business strategies, plans and techniques; computer programs, devices, methods, techniques, processes and inventions; research and development activities; trade secrets as defined by applicable law and other materials (whether in written, graphic, audio, visual, electronic or other media, including computer software) developed by or on behalf of the Company which is not generally known to the public, which the Company has and will take precautions to maintain as confidential, and which derives at least a portion of its value to the Company from its confidentiality. Additionally, Confidential Information includes information of any third party doing business with the Company (actively or prospectively) that the Company or such third party identifies as being confidential. Confidential Information does not include any information that is in the public domain or otherwise publicly available (other than as a result of a wrongful act by the Grantee or an agent or other employee of the Company). For purposes of this Section 14, the term “the Company” also refers to each of its officers, directors, employees and agents, all subsidiary and affiliated entities, all benefit plans and benefit plans’ sponsors and administrators, fiduciaries, affiliates, and all successors and assigns of any of them.

(b)Agreement to Maintain the Confidentiality of Confidential Information. The Grantee acknowledges that, as a result of his/her employment by the Company, he/she will have access to such Confidential Information and to additional Confidential Information which may be developed in the future. The Grantee acknowledges that all Confidential Information is the exclusive property of the Company, or in the case of Confidential Information of a third party, of such third party. The Grantee agrees to hold all Confidential Information in trust for the benefit of the owner of such Confidential Information. The Grantee further agrees that he/she will use Confidential Information for the sole purpose of performing his/her work for the Company, and that during his/her employment with the Company, and at all times after the termination of that employment for any reason, the Grantee will not use for his/her benefit, or the benefit of others, or divulge or convey to any third party any Confidential Information

obtained by the Grantee during his/her employment by the Company, unless it is pursuant to the Company’s prior written permission.

(c)Return of Property. The Grantee acknowledges that he/she has not acquired and will not acquire any right, title or interest in any Confidential Information or any portion thereof. The Grantee agrees that upon termination of his/her employment for any reason, he/she will deliver to the Company immediately, but in no event later that the last day of his/her employment, all documents, data, computer programs and all other materials, and all copies thereof, that were obtained or made by the Grantee during his/her employment with the Company, which contain or relate to Confidential Information and will destroy all electronically stored versions of the foregoing.

(d)Disclosure and Assignment of Inventions and Creative Works. The Grantee agrees to promptly disclose in writing to the Company all inventions, ideas, discoveries, developments, improvements and innovations (collectively “Inventions”), whether or not patentable and all copyrightable works, including but limited to computer software designs and programs (“Creative Works”) conceived, made or developed by the Grantee, whether solely or together with others, during the period the Grantee is employed by the Company. The Grantee agrees that all Inventions and all Creative Works, whether or not conceived or made during working hours, that: (1) relate directly to the business of the Company or its actual or demonstrably anticipated research or development, or (2) result from the Grantee’s work for the Company, or (3) involve the use of any equipment, supplies, facilities, Confidential Information, or time of the Company, are the exclusive property of the Company. The Grantee hereby assigns and agrees to assign all right, title and interest in and to all such Inventions and Creative Works to the Company. The Grantee understands that he/she is not required to assign to the Company any Invention or Creative Work for which no equipment, supplies, facilities, Confidential Information or time of the Company was used, unless such Invention or Creative Work relates directly to the Company’s business or actual or demonstrably anticipated research and development, or results from any work performed by the Grantee for the Company.

(e)Non-Solicitation of Clients. During the period of the Grantee’s employment with the Company and for a period of one year from the date of termination of such employment for any reason, the Grantee agrees that he/she will not, directly or indirectly, for the Grantee’s benefit or on behalf of any person, corporation, partnership or entity whatsoever, call on, solicit, perform services for, interfere with or endeavor to entice away from the Company any client to whom the Grantee provides services at any time during the 12 month period preceding the date of termination of the Grantee’s employment with the Company, or any prospective client to whom the Grantee had made a presentation at any time during the 12 month period preceding the date of termination of the Grantee’s employment with the Company.

(f)Non-Solicitation of Employees. For a period of one year after the date of termination of the Grantee’s employment with the Company for any reason, the Grantee agrees that he/she will not, directly or indirectly, hire, attempt to hire, solicit for employment or encourage the departure of any employee of the Company, to leave employment with the Company, or any individual who was employed by the Company as of the last day of the Grantee’s employment with the Company.

(g)Enforcement. If, at the time of enforcement of this Section 14, a court holds that any of the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area deemed reasonable under such circumstances will be substituted for the stated period, scope or area as contained

in this Section 14. Because money damages would be an inadequate remedy for any breach of the Grantee’s obligations under this Agreement, in the event the Grantee breaches or threatens to breach this Section 14, the Company, or any successors or assigns, may, in addition to other rights and remedies existing in its favor, apply to any court of competent jurisdiction for specific performance, or injunctive or other equitable relief in order to enforce or prevent any violations of this Section 14.

(h)Miscellaneous. The Grantee acknowledges and agrees that the provisions of this Section 14 are in addition to, and not in lieu of, any confidentiality, non-solicitation, work product assignment and/or similar obligations that the Grantee may have with respect to the Company and/or its Affiliates, whether by agreement, fiduciary obligation or otherwise and that the grant and the vesting of the Restricted Stock Units contemplated by this Agreement are expressly made contingent on the Grantee's compliance with the provisions of this Section 14. Without in any way limiting the provisions of this Section 14, the Grantee further acknowledges and agrees that the provisions of this Section 14 shall remain applicable in accordance with their terms after the Grantee's termination of employment with the Company, regardless of whether (1) the Grantee's termination or cessation of employment is voluntary or involuntary or (2) the Restricted Stock Units have not vested or will not vest.

15.Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflict of law principles thereof. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and controls and supersedes any prior understandings, agreements or representations by or between the parties, written or oral with respect to its subject matter and may not be modified except by written instrument executed by the parties. The Grantee has not relied on any representation not set forth in this Agreement.

IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written.

HUDSON GLOBAL, INC.

By:    ___________________        

Name:

Title:

_____________________________                    

Grantee - Signature

_____________________________                    

Grantee - Print Name

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Stephen A. Nolan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hudson Global, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	April 28, 2016	/s/ STEPHEN A. NOLAN
		Stephen A. Nolan
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Patrick Lyons, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Hudson Global, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated:	April 28, 2016	/s/ PATRICK LYONS
		Patrick Lyons
		Chief Financial Officer and Chief Accounting Officer

EX-32.1

Exhibit 32.1

Written Statement of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Executive Officer of Hudson Global, Inc. (the “Company”), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ STEPHEN A. NOLAN

Stephen A. Nolan

April 28, 2016

EX-32.2

Exhibit 32.2

Written Statement of the Chief Financial Officer and Chief Accounting Officer

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Financial Officer and Chief Accounting Officer of Hudson Global, Inc. (the “Company”), hereby certify, based on my knowledge, that the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ PATRICK LYONS

Patrick Lyons

April 28, 2016

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2016 shares
Document Documentand Entity Information [Abstract]
Entity Registrant Name	Hudson Global, Inc.
Entity Central Index Key	0001210708
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	34,245,784

XML

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenue	$ 101,227	$ 124,317
Direct costs	59,965	76,413
Gross margin	41,262	47,904
Operating expenses:
Selling, general and administrative expenses	43,642	52,166
Depreciation and amortization	688	1,111
Business reorganization expenses	637	1,343
Operating income (loss)	(3,705)	(6,716)
Non-operating income (expense):
Interest income (expense), net	(54)	(80)
Other income (expense), net	(137)	13
Income (loss) from continuing operations before provision for income taxes	(3,896)	(6,783)
Provision for (benefit from) income taxes from continuing operations	(326)	(129)
Income (loss) from continuing operations	(3,570)	(6,654)
Income (loss) from discontinued operations, net of income taxes	83	(184)
Net income (loss)	$ (3,487)	$ (6,838)
Basic and diluted earnings (loss) per share:
Basic and diluted earnings (loss) per share from continuing operations	$ (0.10)	$ (0.20)
Basic and diluted earnings (loss) per share from discontinued operations	0.00	(0.01)
Basic and diluted earnings (loss) per share	$ (0.10)	$ (0.21)
Weighted-average shares outstanding:
Basic (in shares)	34,631	33,053
Diluted (in shares)	34,631	33,053

XML

CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income (loss)	$ (3,487)	$ (6,838)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	668	(2,763)
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax	(2)	17
Other Comprehensive Income (Loss), Net of Tax	670	(2,780)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ (2,817)	$ (9,618)

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 31,927	$ 37,663
Accounts receivable, less allowance for doubtful accounts of $856 and $860 respectively	64,208	62,420
Prepaid and other	6,154	5,979
Current assets of discontinued operations	38	81
Total current assets	102,327	106,143
Property and equipment, net	7,912	7,928
Deferred tax assets, non-current	7,552	6,724
Other assets, non-current	4,047	4,154
Total assets	121,838	124,949
Current liabilities:
Accounts payable	5,094	5,184
Accrued expenses and other current liabilities	39,849	40,344
Short-term borrowings	5,770	2,368
Accrued business reorganization expenses	2,301	2,252
Current liabilities of discontinued operations	970	1,443
Total current liabilities	53,984	51,591
Deferred rent and tenant improvement contributions	4,042	4,244
Income tax payable, non-current	2,316	2,279
Other non-current liabilities	5,459	5,655
Total liabilities	$ 65,801	$ 63,769
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding	$ 0	$ 0
Common stock, $0.001 par value, 100,000 shares authorized; issued 35,260 and 35,260 shares, respectively	34	34
Additional paid-in capital	481,188	480,816
Accumulated deficit	(433,487)	(428,287)
Accumulated other comprehensive income, net of applicable tax	10,962	10,292
Treasury stock, 1,015 and 646 shares, respectively, at cost	(2,660)	(1,675)
Total stockholders' equity	56,037	61,180
Total liabilities and stockholders' equity	$ 121,838	$ 124,949

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 856	$ 860
Preferred stock, par value (per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, issued	35,260	35,260
Treasury stock, shares	1,012	646

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income (loss)	$ (3,487)	$ (6,838)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	688	1,111
Provision for (recovery of) doubtful accounts	32	75
Provision for (benefit from) deferred income taxes	(672)	(346)
Stock-based compensation	372	533
Other, net	187	36
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(758)	(9,760)
Decrease (increase) in prepaid and other assets	59	1,781
Increase (decrease) in accounts payable, accrued expenses and other liabilities	(1,586)	(4,718)
Increase (decrease) in accrued business reorganization expenses	(657)	(241)
Net cash used in operating activities	(5,822)	(18,367)
Cash flows from investing activities:
Capital expenditures	(643)	(695)
Proceeds from sale of assets	13	0
Net cash provided by (used in) investing activities	(630)	(695)
Cash flows from financing activities:
Borrowings under credit agreements	26,882	18,625
Repayments under credit agreements	(23,758)	(18,555)
Repayment of capital lease obligations	(21)	(5)
Payments of Ordinary Dividends, Common Stock	(1,713)	0
Purchase of treasury stock	(985)	0
Purchase of restricted stock from employees	0	(34)
Net cash provided by (used in) financing activities	405	31
Effect of exchange rates on cash and cash equivalents	311	(1,064)
Net increase (decrease) in cash and cash equivalents	(5,736)	(20,095)
Cash and cash equivalents, beginning of the period	37,663	33,989
Cash and cash equivalents, end of the period	31,927	13,894
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	58	64
Net cash payments (refunds) during the period for income taxes	$ 44	$ (167)

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income (loss)	Treasury stock
Beginning Balance (in shares) at Dec. 31, 2015		34,611
Beginning Balance at Dec. 31, 2015	$ 61,180	$ 34	$ 480,816	$ (428,287)	$ 10,292	$ (1,675)
Net income (loss)	(3,487)			(3,487)
Other comprehensive income (loss), currency translation adjustments, net of applicable tax	668				668
Other comprehensive income (loss), pension liability adjustment	2				2
Dividends, Common Stock, Cash	(1,713)			(1,713)
Stock Repurchased During Period, Shares		(366)
Purchase of treasury stock	(985)
Stock-based compensation (in shares)		0
Stock-based compensation	372		372
Ending Balance (in shares) at Mar. 31, 2016		34,245
Ending Balance at Mar. 31, 2016	$ 56,037	$ 34	$ 481,188	$ (433,487)	$ 10,962	$ (2,660)

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

These interim unaudited condensed consolidated financial statements have been prepared in accordance with United States of America ("U.S.") generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and should be read in conjunction with the consolidated financial statements and related notes of Hudson Global, Inc. and its subsidiaries (the "Company") filed in its Annual Report on Form 10-K for the year ended December 31, 2015.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of operating revenues and expenses. These estimates are based on management’s knowledge and judgments. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows at the dates and for the periods presented have been included. The results of operations for interim periods are not necessarily indicative of the results of operations for the full year. The Condensed Consolidated Financial Statements include the accounts of the Company and all of its wholly-owned and majority-owned subsidiaries. All significant intra-entity balances and transactions between and among the Company and its subsidiaries have been eliminated in consolidation.

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DESCRIPTION OF BUSINESS

3 Months Ended

Mar. 31, 2016

Description of Business [Abstract]

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS

The Company is comprised of the operations, assets and liabilities of the three Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe ("Hudson regional businesses" or "Hudson"). The Company provides specialized professional-level recruitment and related talent solutions. The Company’s core service offerings include Permanent Recruitment, Temporary Contracting, Recruitment Process Outsourcing ("RPO") and Talent Management Solutions.

The Company operates in 12 countries with three reportable geographic business segments: Hudson Americas, Hudson Asia Pacific, and Hudson Europe. See Note 18 for further details regarding the reportable segments.

Corporate expenses are reported separately from the reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, tax, marketing, information technology and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them and have been allocated to the segments as management service fees and are included in the segments’ non-operating other income (expense).

The Company’s core service offerings include those services described below.

Permanent Recruitment: Offered on both a retained and contingent basis, Hudson’s Permanent Recruitment services leverage its consultants, psychologists and other professionals in the development and delivery of its proprietary methods to identify, select and engage the best-fit talent for critical client roles.

Temporary Contracting: In Temporary Contracting, Hudson provides a range of project management, interim management and professional contract staffing services. These services draw upon a combination of specialized recruiting and project management competencies to deliver a wide range of solutions. Hudson-employed professionals - either individually or as a team - are placed with client organizations for a defined period of time based on a client's specific business need.

RPO: Hudson RPO delivers both permanent recruitment and temporary contracting outsourced recruitment solutions tailored to the individual needs of primarily mid-to-large-cap multinational companies. Hudson RPO's delivery teams utilize state-of-the-art recruitment process methodologies and project management expertise in their flexible, turnkey solutions to meet clients' ongoing business needs. Hudson RPO services include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions and recruitment consulting.

Talent Management Solutions: Featuring embedded proprietary talent assessment and selection methodologies, Hudson’s Talent Management capability encompasses services such as talent assessment (utilizing a variety of competency, attitude and experiential testing), interview training, executive coaching, employee development and outplacement.

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RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In March 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-09, "Stock Compensation (Topic 718)" ("ASU 2016-09"),  which is intended to simplify several aspects of the accounting for share-based payment award transactions. ASU 2016-09 will be effective for the fiscal year beginning after December 15, 2016, including interim periods within that year. Early adoption is permitted. The Company is currently evaluating the impact to its consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), which amends the existing standards for lease accounting. This new standard requires the recognition of lease assets and lease liabilities on the balance sheet and the disclosure of key information about leasing arrangements including the amounts, timing, and uncertainty of cash flows arising from leases. ASU 2016-02 will be effective for the Company on January 1, 2019 and will require modified retrospective application as of the beginning of the earliest year presented in the financial statements. Early adoption is permitted. The Company is currently evaluating the impact to its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB amended the effective date of this ASU to fiscal years beginning after December 15, 2017 and early adoption is permitted only for fiscal years beginning after December 15, 2016.  In addition, in March 2016, the FASB issued ASU No. 2016-08, "Revenue from Contracts with Customers: Principal versus Agent Considerations" ("ASU 2016-08"). The amendments are intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The Company plans to adopt this guidance on January 1, 2018. Companies may use either a full retrospective or a modified retrospective approach to adopt this ASU. The Company is currently evaluating the impact to its consolidated financial statements.

There are no other recently issued accounting pronouncements that have had, or that the Company believes will have, a material impact on the Company's consolidated financial statements.

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DIVESTITURES

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DIVESTITURES

Hudson Information Technology (US) business (the "US IT business")

On June 15, 2015, the Company completed the sale (the "US IT Business Sale") of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. (the "Purchaser"). The completion of the US IT Business Sale was effective June 14, 2015. The US IT Business Sale was pursuant to an Asset Purchase Agreement, dated as of May 8, 2015 (the "Agreement"), by and among the Company, Hudson Global Resources Management, Inc., a wholly owned subsidiary of the Company, and the Purchaser. At the closing of the U.S. IT Business Sale, the Company received from the Purchaser pursuant to the Agreement the purchase price of $16,977 in cash. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The US IT business pre-tax loss in accordance with ASC No. 205 "Reporting Discontinued Operations" ("ASC 205") for the three months ended March 31,2016 and 2015 was $0 and $396, respectively.

Netherlands business

On May 7, 2015, the Company entered into a Share Purchase Agreement and completed the sale (the "Netherlands Business Sale") of its Netherlands business to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9,029, which included cash retained of $1,135. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The Netherlands pre-tax profit in accordance with ASC 205 for the three months ended March 31,2016 and 2015was $0 and $356, respectively.

Exit of Businesses in Central and Eastern Europe

In February 2015, the Company's Board of Directors approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the quarter ended June 30, 2015, the Company deemed the liquidation of its Central and Eastern Europe businesses to be substantially complete.

Luxembourg

In March 2015, the Company's management approved the exit of operations in Luxembourg. In the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete.

DISCONTINUED OPERATIONS

Effective November 9, 2014, the Company completed the sale of substantially all of the assets and certain liabilities of its Legal eDiscovery business in the U.S. and United Kingdom ("U.K.") to Document Technologies, LLC and DTI of London Limited. In addition, in 2014, the Company ceased operations in Sweden, which was included within the Hudson Europe segment. The Company concluded that the divestiture of the Legal eDiscovery business and the cessation of operations in Sweden meet the criteria for discontinued operations set forth in ASC 205. The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented.

The carrying amounts of the classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included in discontinued operations were as follows:

	March 31, 2016						December 31, 2015
	eDiscovery		Sweden		Total		eDiscovery		Sweden		Total
Total current assets	$	38	$	—	$	38	$	49	$	32	$	81
Total liabilities (a)	$	1,085	$	10	$	1,095	$	1,439	$	4	$	1,443

(a) Total liabilities primarily consisted of restructuring liabilities for lease termination payments.

Reported results for the discontinued operations by period were as follows:

	Three Months Ended March 31, 2016								Three Months Ended March 31, 2015
	eDiscovery			Sweden		Total			eDiscovery			Sweden			Total
Revenue	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)
Reorganization expenses	(139		)	—		(139		)	363			(6		)	357
Gain (loss) from sale and liquidation of discontinued operations	—			—		—			82			—			82
Income (loss) from discontinued operations before income taxes	109			—		109			(193		)	(28		)	(221		)
Provision (benefit) for income taxes	26			—		26			(37		)	—			(37		)
Income (loss) from discontinued operations	$	83		$	—	$	83		$	(156	)	$	(28	)	$	(184	)

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DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

Hudson Information Technology (US) business (the "US IT business")

On June 15, 2015, the Company completed the sale (the "US IT Business Sale") of substantially all of the assets (excluding working capital) of its US IT business to Mastech, Inc. (the "Purchaser"). The completion of the US IT Business Sale was effective June 14, 2015. The US IT Business Sale was pursuant to an Asset Purchase Agreement, dated as of May 8, 2015 (the "Agreement"), by and among the Company, Hudson Global Resources Management, Inc., a wholly owned subsidiary of the Company, and the Purchaser. At the closing of the U.S. IT Business Sale, the Company received from the Purchaser pursuant to the Agreement the purchase price of $16,977 in cash. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The US IT business pre-tax loss in accordance with ASC No. 205 "Reporting Discontinued Operations" ("ASC 205") for the three months ended March 31,2016 and 2015 was $0 and $396, respectively.

Netherlands business

On May 7, 2015, the Company entered into a Share Purchase Agreement and completed the sale (the "Netherlands Business Sale") of its Netherlands business to InterBalance Group B.V., effective April 30, 2015, in a management buyout for $9,029, which included cash retained of $1,135. As the divestiture did not reach the thresholds required to qualify as discontinued, the operations remain within the Company's continuing operations for all periods presented. The Netherlands pre-tax profit in accordance with ASC 205 for the three months ended March 31,2016 and 2015was $0 and $356, respectively.

Exit of Businesses in Central and Eastern Europe

In February 2015, the Company's Board of Directors approved the exit of operations in certain countries within Central and Eastern Europe (Ukraine, Czech Republic and Slovakia). During the quarter ended June 30, 2015, the Company deemed the liquidation of its Central and Eastern Europe businesses to be substantially complete.

Luxembourg

In March 2015, the Company's management approved the exit of operations in Luxembourg. In the third quarter of 2015, the Company deemed the liquidation of its Luxembourg business to be substantially complete.

DISCONTINUED OPERATIONS

Effective November 9, 2014, the Company completed the sale of substantially all of the assets and certain liabilities of its Legal eDiscovery business in the U.S. and United Kingdom ("U.K.") to Document Technologies, LLC and DTI of London Limited. In addition, in 2014, the Company ceased operations in Sweden, which was included within the Hudson Europe segment. The Company concluded that the divestiture of the Legal eDiscovery business and the cessation of operations in Sweden meet the criteria for discontinued operations set forth in ASC 205. The Company reclassified its discontinued operations for all periods presented and has excluded the results of its discontinued operations from continuing operations and from segment results for all periods presented.

The carrying amounts of the classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included in discontinued operations were as follows:

	March 31, 2016						December 31, 2015
	eDiscovery		Sweden		Total		eDiscovery		Sweden		Total
Total current assets	$	38	$	—	$	38	$	49	$	32	$	81
Total liabilities (a)	$	1,085	$	10	$	1,095	$	1,439	$	4	$	1,443

(a) Total liabilities primarily consisted of restructuring liabilities for lease termination payments.

Reported results for the discontinued operations by period were as follows:

	Three Months Ended March 31, 2016								Three Months Ended March 31, 2015
	eDiscovery			Sweden		Total			eDiscovery			Sweden			Total
Revenue	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)
Reorganization expenses	(139		)	—		(139		)	363			(6		)	357
Gain (loss) from sale and liquidation of discontinued operations	—			—		—			82			—			82
Income (loss) from discontinued operations before income taxes	109			—		109			(193		)	(28		)	(221		)
Provision (benefit) for income taxes	26			—		26			(37		)	—			(37		)
Income (loss) from discontinued operations	$	83		$	—	$	83		$	(156	)	$	(28	)	$	(184	)

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REVENUE, DIRECT COSTS AND GROSS MARGIN

3 Months Ended

Mar. 31, 2016

Revenue, Direct Costs and Gross Margin [Abstract]

REVENUE, DIRECT COSTS AND GROSS MARGIN

REVENUE, DIRECT COSTS AND GROSS MARGIN

 The Company’s revenue, direct costs and gross margin were as follows: 

	Three Months Ended March 31, 2016
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	65,856	$	26,572	$	8,799	$	101,227
Direct costs (1)	57,222		574		2,169		59,965
Gross margin	$	8,634	$	25,998	$	6,630	$	41,262
	Three Months Ended March 31, 2015
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	86,580	$	28,106	$	9,631	$	124,317
Direct costs (1)	73,616		485		2,312		76,413
Gross margin	$	12,964	$	27,621	$	7,319	$	47,904

(1) Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Permanent Recruitment and Other category include direct costs for out-of-pocket expenses and third party suppliers. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statement of Operations.

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

Incentive Compensation Plan

The Company maintains the Hudson Global, Inc. 2009 Incentive Stock and Awards Plan, as amended and restated April 26, 2012 (the "ISAP"), pursuant to which it can issue equity-based compensation incentives to eligible participants. The ISAP permits the granting of stock options, restricted stock, restricted stock units, and other types of equity-based awards. The Compensation Committee of the Company’s Board of Directors (the "Compensation Committee") will establish such conditions as it deems appropriate on the granting or vesting of stock options, restricted stock, restricted stock units and other types of equity-based awards. As determined by the Compensation Committee, equity awards also may be subject to immediate vesting upon the occurrence of certain events following a change in control of the Company. The Company primarily grants restricted stock and restricted stock units to its employees. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock of the Company issued under the ISAP.

The Compensation Committee administers the ISAP and may designate any of the following as a participant under the ISAP: any officer or other employee of the Company or its affiliates or individuals engaged to become an officer or employee; consultants or other independent contractors who provide services to the Company or its affiliates; and non-employee directors of the Company. As of March 31, 2016, there were 261,639 shares of the Company’s common stock available for future issuance under the ISAP.

A summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the three months ended March 31, 2016 was as follows:

Vesting conditions	Number of Restricted Stock Units Granted
Performance and service conditions (1) (2)	500,000

(1) The performance conditions with respect to restricted stock units may be satisfied as follows: 

(a) For employees from the Americas, Asia Pacific and Europe 80% of the restricted stock units may be earned on the basis of performance as measured by a "regional adjusted EBITDA," and 20% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA"; and

(b) For employees from the Corporate office 100% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA."

(2) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows:

(a) One-third of the restricted stock units will vest on the first anniversary of the grant date;

(b) One-third of the restricted stock units will vest on the second anniversary of the grant date; and

(c) One-third of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date.

The Company also maintains the Director Deferred Share Plan (the "Director Plan") pursuant to which it can issue restricted stock units to its non-employee directors. A restricted stock unit is equivalent to one share of the Company’s common stock and is payable only in common stock issued under the ISAP upon a director ceasing service as a member of the Board of Directors of the Company. The restricted stock units vest immediately upon grant and are credited to each of the non-employee director's retirement accounts under the Director Plan. Restricted stock units issued under the Director Plan contain the right to a dividend equivalent award in the form of additional restricted stock units. The dividend equivalent award is calculated using the same rate as the cash dividend paid on a share of the Company's common stock, and then divided by the closing price of the Company’s common stock on the date the dividend is paid to determine the number of additional restricted stock units to grant. Dividend equivalent awards have the same vesting terms as the underlying awards. During the three months ended March 31, 2016, the Company granted 30,687 restricted stock units to its non-employee directors pursuant to the Director Plan.

For the three months ended March 31, 2016 and 2015, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units were as follows:

	Three Months Ended
	March 31,
	2016		2015
Stock options	$	5	$	—
Restricted stock	240		385
Restricted stock units	127		148
Total	$	372	$	533

Stock Options

Stock options granted by the Company generally expire between five and ten years after the date of grant and have an exercise price of at least 100% of the fair market value of the underlying share of common stock on the date of grant.

As of March 31, 2016, the Company had approximately $12 of unrecognized stock-based compensation expense related to outstanding unvested stock options. The Company expects to recognize that cost over a weighted average service period of 0.60 years.

Changes in the Company’s stock options for the three months ended March 31,2016 and 2015 were as follows: 

	Three Months Ended March 31,
	2016				2015
	Number of Options		Weighted Average Exercise Price per Share		Number of Options		Weighted Average Exercise Price per Share
Options outstanding at January 1,	206,000		$	8.13	756,800		$	8.78
Expired/forfeited	(16,000	)	15.86		(109,000	)	13.25
Options outstanding at March 31,	190,000		$	7.48	647,800		$	8.03
Options exercisable at March 31,	165,000		$	8.24	647,800		$	8.03

Restricted Stock

As of March 31, 2016, the Company had approximately $462 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock. The Company expects to recognize that cost over a weighted average service period of 0.51 years. Restricted stock awards have voting and dividend rights as of the grant date.

Changes in the Company’s restricted stock for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016			2015
	Number of Shares of Restricted Stock	Weighted Average Grant Date Fair Value		Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value
Unvested restricted stock at January 1,	680,000	$	1.60	803,999		$	3.00
Granted	—	—		590,100		2.84
Vested	—	—		(132,775	)	3.50
Forfeited	—	—		(171,622	)	3.17
Unvested restricted stock at March 31,	680,000	$	1.60	1,089,702		$	2.82

Restricted Stock Units

As of March 31, 2016, the Company had approximately $1,100 of unrecognized stock-based compensation expense related to outstanding unvested restricted stock units. The Company expects to recognize that cost over a weighted average service period of 1.90 years. Restricted stock units granted to employees have no voting or dividend rights until the awards are vested.

Changes in the Company’s restricted stock units for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016				2015
	Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value		Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value
Unvested restricted stock units at January 1,	—		$	—	119,940		$	3.57
Granted	530,687		2.79		144,664		2.84
Vested	(30,687	)	2.73		(56,310	)	2.95
Forfeited	—		—		(42,500	)	3.21
Unvested restricted stock units at March 31,	500,000		$	2.79	165,794		$	3.24

Defined Contribution Plan and Employer-Matching Contributions

The Company maintains the Hudson Global, Inc. 401(k) Savings Plan (the "401(k) plan"). The 401(k) plan allows eligible employees to contribute up to 15% of their earnings to the 401(k) plan. The Company has the discretion to match employees’ contributions up to 3% of the employees' earnings through a contribution of the Company’s common stock or cash to the 401(k) plan. Vesting of the Company’s contribution occurs over a five-year period. For the three months ended March 31,2016 and 2015, the Company’s current year expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows:

	Three Months Ended
	March 31,
($ in thousands, except otherwise stated)	2016		2015
Expense recognized for the 401(k) plan	$	20	$	75
Contributions to satisfy prior years' employer-matching liability
Number of shares of the Company's common stock issued (in thousands)	—		116
Market value per share of the Company's common stock on contribution date (in dollars)	$	—	$	2.71
Non-cash contribution made for employer matching liability	$	—	$	314

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INCOME TAXES

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

Under ASC 270, "Interim Reporting", and ASC 740-270, "Income Taxes – Intra Period Tax Allocation", the Company is required to adjust its effective tax rate for each quarter to be consistent with the estimated annual effective tax rate. Jurisdictions with a projected loss for the full year where no tax benefit can be recognized are excluded from the calculation of the estimated annual effective tax rate. Applying the provisions of ASC 270 and ASC 740-270 could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections.

Effective Tax Rate

The benefit from income taxes for the three months ended March 31, 2016 was $326 on a pre-tax loss from continuing operations of $3,896, compared to a benefit from income taxes of $129 on pre-tax loss from continuing operations of $6,783 for the same period in 2015. The Company’s effective income tax rate was 8.4% and 1.9% for the three months ended March 31, 2016 and 2015, respectively. For the three months ended March 31, 2016 and for the three months ended March 31, 2015, the effective tax rate differed from the U.S. Federal statutory rate of 35% primarily due to the inability of the Company to recognize tax benefits on certain losses until positive earnings are achieved in the U.S. and certain other foreign jurisdictions, non-deductible expenses, and variations from the U.S. tax rate in foreign jurisdictions.

Uncertain Tax Positions

As of March 31, 2016 and December 31, 2015, the Company had $2,316 and $2,279, respectively, of unrecognized tax benefits, including interest and penalties, which if recognized in the future, would lower the Company’s annual effective income tax rate. Accrued interest and penalties were $566 and $536 as of March 31, 2016 and December 31, 2015, respectively. Estimated interest and penalties are classified as part of the provision for income taxes in the Company’s Condensed Consolidated Statement of Operations and totaled to a provision of$14 for the three months ended March 31, 2016 and 2015.

In many cases, the Company’s unrecognized tax benefits are related to tax years that remain subject to examination by the relevant tax authorities. Tax years with net operating losses ("NOLs") remain open until such losses expire or until the statutes of limitations for those years when the NOLs are used expire. As of March 31, 2016, the Company's open tax years, which remain subject to examination by the relevant tax authorities, were principally as follows:

	Year
Earliest tax years which remain subject to examination by the relevant tax authorities:
U.S. Federal	2012
Majority of U.S. state and local jurisdictions	2011
United Kingdom	2014
Australia	2011
Majority of other non-U.S. jurisdictions	2010

The Company believes that its tax reserves are adequate for all years that remain subject to examination or are currently under examination.

Based on information available as of March 31, 2016, it is reasonably possible that the total amount of unrecognized tax benefits could decrease in the range of $200 to $400 over the next 12 months as a result of projected resolutions of global tax examinations and controversies and potential expirations of the applicable statutes of limitations.

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EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

Basic earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding during the period. When the effects are not anti-dilutive, diluted earnings (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of shares outstanding and the impact of all dilutive potential common shares, primarily stock options "in-the-money", unvested restricted stock and unvested restricted stock units. The dilutive impact of stock options, unvested restricted stock, and unvested restricted stock units is determined by applying the "treasury stock" method. Performance-based restricted stock awards are included in the computation of diluted earnings per share only to the extent that the underlying performance conditions: (i) are satisfied prior to the end of the reporting period; or (ii) would be satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method. Stock awards subject to vesting or exercisability based on the achievement of market conditions are included in the computation of diluted earnings per share only when the market conditions are met.

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016			2015
Earnings (loss) per share ("EPS"):
EPS - basic and diluted:
Income (loss) from continuing operations	$	(0.10	)	$	(0.20	)
Income (loss) from discontinued operations	—			(0.01		)
Net income (loss)	$	(0.10	)	$	(0.21	)
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$	(3,570	)	$	(6,654	)
Income (loss) from discontinued operations	83			(184		)
Net income (loss)	$	(3,487	)	$	(6,838	)
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	34,631			33,053
Common stock equivalents: stock options and other stock-based awards (a)	—			—
Weighted average number of common stock outstanding - diluted	34,631			33,053

(a) For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 7 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three months ended March 31, 2016 and 2015 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:

	Three Months Ended
	March 31,
	2016	2015
Unvested restricted stock	680,000	1,089,702
Unvested restricted stock units	500,000	165,794
Stock options	165,000	647,800
Total	1,345,000	1,903,296

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RESTRICTED CASH

3 Months Ended

Mar. 31, 2016

Restricted Cash and Investments [Abstract]

RESTRICTED CASH

RESTRICTED CASH

A summary of the Company’s restricted cash included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 was as follows: 

	March 31, 2016		December 31, 2015
Included under the caption "Prepaid and other":
Client guarantees	$	133	$	118
Other	115		110
Total amount under the caption "Prepaid and other"	$	248	$	228
Included under the caption "Other assets":
Collateral accounts	$	179	$	229
Rental deposits	449		480
Total amount under the caption "Other assets"	$	628	$	709
Total restricted cash	$	876	$	937

Collateral accounts primarily include deposits held under a collateral trust agreement, which supports the Company’s workers’ compensation policy. The rental deposits with banks include amounts held as guarantees from subtenants in the U.K. Client guarantees were held in banks in Belgium as deposits for various client projects. Other primarily includes bank guarantee for licensing in Switzerland.

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PROPERTY AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment, Net [Abstract]

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET

As of March 31, 2016 and December 31, 2015, property and equipment, net, was as follows:

	March 31, 2016		December 31, 2015
Computer equipment	$	6,360	$	5,911
Furniture and equipment	2,116		2,668
Capitalized software costs	18,308		17,946
Leasehold improvements	15,396		15,522
	42,180		42,047
Less: accumulated depreciation and amortization	34,268		34,119
Property and equipment, net	$	7,912	$	7,928

The Company had expenditures of approximately $392 and $513 for acquired property and equipment, mainly consisting of software, furniture and fixtures and leasehold improvements, which had not been placed in service as of March 31, 2016 and December 31, 2015, respectively. Depreciation expense is not recorded for such assets until they are placed in service.

Non-Cash Capital Expenditures

The Company has acquired certain computer equipment under capital lease agreements. The current portion of the capital lease obligations are included under the caption "Accrued expenses and other current liabilities" in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 and the non-current portion of the capital lease obligations are included under the caption "Other non-current liabilities" in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015. A summary of the Company’s equipment acquired under capital lease agreements were as follows:

	March 31, 2016		December 31, 2015
Capital lease obligation, current	$	66	$	62
Capital lease obligation, non-current	$	218	$	229

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GOODWILL

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL

GOODWILL

The following is a summary of the changes in the carrying value of the Company’s goodwill, which was included under the caption "Other Assets" in the accompanying Condensed Consolidated Balance Sheets, as of March 31, 2016 and December 31, 2015. The goodwill related to the earn-out payment made in 2010 for the Company’s 2007 acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.

	Carrying Value
	2016
Goodwill, January 1,	$	1,938
Currency translation	14
Goodwill, March 31,	$	1,952

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BUSINESS REORGANIZATION EXPENSES

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

BUSINESS REORGANIZATION EXPENSES

BUSINESS REORGANIZATION EXPENSES

The Company initiated and executed certain strategic actions requiring business reorganization expenses ("2016 Exit Plan").Business exit costs associated with the 2016 Exit Plan primarily consisted of employee termination benefits, lease termination payments and costs for elimination of contracts for certain discontinued services and locations.

The Board previously approved other reorganization plans in prior years (the "Previous Plans"). Business exit costs associated with Previous Plans primarily consisted of employee termination benefits, lease termination payments and costs for elimination of contracts for certain discontinued services and locations.

For the three months ended March 31,2016, restructuring charges associated with these initiatives primarily included employee separation costs in Asia Pacific and lease termination payments for rationalized offices in Europe under the 2016 Exit Plan and Previous Plans. Business reorganization expenses for the three months ended March 31, 2016 and 2015 by plan were as follows:

	Three Months Ended March 31,
	2016		2015
Previous Plans	$	223	$	1,343
2016 Exit Plan	414		—
Total reorganization expenses in continuing operations	$	637	$	1,343

The following table contains amounts for Changes in Estimate, Additional Charges, and Payments related to the 2016 Exit Plan and Previous Plans that were incurred or recovered during the three months ended March 31,2016 in continuing operations. The amounts in the "Changes in Estimate" and "Additional Charges" columns are classified as business reorganization expenses in the Company’s Condensed Consolidated Statement of Operations. Amounts in the "Payments" column represent primarily the cash payments associated with the 2016 Exit Plan and Previous Plans. Changes in the accrued business reorganization expenses for the three months ended March 31,2016 were as follows:

	December 31, 2015		Changes in Estimate			Additional Charges		Payments			March 31, 2016
Lease termination payments	$	2,970	$	186		$	190	$	(272	)	$	3,074
Employee termination benefits	1,186		—			170		(386		)	970
Other associated costs	208		(19		)	110		(279		)	20
Total	$	4,364	$	167		$	470	$	(937	)	$	4,064

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Consulting, Employment and Non-compete Agreements

The Company has entered into various consulting and employment agreements with certain key members of management. These agreements generally (i) are one year in length, (ii) contain restrictive covenants, (iii) under certain circumstances, provide for compensation and, subject to providing the Company with a release, severance payments, and (iv) are automatically renewed annually unless either party gives sufficient notice of termination.

Litigation and Complaints

The Company is subject, from time to time, to various claims, lawsuits, contracts disputes and other complaints from, for example, clients, candidates, suppliers, landlords for both leased and subleased properties, former and current employees, and regulators or tax authorities arising in the ordinary course of business. The Company routinely monitors claims such as these, and records provisions for losses when the claim becomes probable and the amount due is estimable. Although the outcome of these claims cannot be determined, the Company believes that the final resolution of these matters will not have a material adverse effect on the Company’s financial condition, results of operations or liquidity.

For matters that have reached the threshold of probable and estimable, the Company has established reserves for legal, regulatory and other contingent liabilities. The Company’s reserves were $157 and $109 as of March 31, 2016 and December 31, 2015, respectively.

Potential Costs Associated with Termination

In 2015, the Company incurred compensation and benefits obligations to its former Chairman and Chief Executive Officer, Manuel Marquez, under his employment agreement in connection with the Company providing Mr. Marquez notice of non-renewal of his employment agreement, which is treated as a termination of his employment without cause, subject to his execution of a release. The Company has accrued $747 as of March 31, 2016 in connection with compensation and benefits Mr. Marquez is entitled to upon a termination without cause. Mr. Marquez does not agree with this treatment of compensation and benefits under his employment agreement and, on August 13, 2015, filed an arbitration claim against the Company for additional amounts of up to approximately $2,000 and reimbursement of his legal fees. The Company does not agree with Mr. Marquez’s interpretation of the employment agreement and is vigorously defending against such claim for additional amounts. The Company expects the arbitrator will issue his decision on Mr. Marquez’s claim during the second quarter of 2016.

Asset Retirement Obligations

The Company has certain asset retirement obligations that are primarily the result of legal obligations for the removal of leasehold improvements and restoration of premises to their original condition upon termination of leases. The asset retirement obligations are included under the caption "Other non-current liabilities" in the Condensed Consolidated Balance Sheets. The Company’s asset retirement obligations that are included in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016		December 31, 2015
Total asset retirement obligations	$	1,989	$	1,962

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CREDIT AGREEMENTS

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

CREDIT AGREEMENTS

CREDIT AGREEMENTS

Receivables Finance Agreement with Lloyds Bank Commercial Finance Limited and Lloyds Bank PLC

On August 1, 2014, the Company’s U.K. subsidiary ("U.K. Borrower") entered into a receivables finance agreement for an asset-based lending funding facility (the "Lloyds Agreement") with Lloyds Bank PLC and Lloyds Bank Commercial Finance Limited (together, "Lloyds"). The Lloyds Agreement provides the U.K. Borrower with the ability to borrow up to $21,540 (£15,000). Extensions of credit are based on a percentage of the eligible accounts receivable less required reserves from the Company's U.K. operations. The initial term is two years with renewal periods every three months thereafter. Borrowings under this facility are secured by substantially all of the assets of the U.K. Borrower.

The credit facility under the Lloyds Agreement contains two tranches. The first tranche is a revolving facility based on the billed temporary contracting and permanent recruitment activities in the U.K. operations ("Lloyds Tranche A"). The borrowing limit of Lloyds Tranche A is $17,232 (£12,000) based on 83% of eligible billed temporary contracting and permanent recruitment receivables. The second tranche is a revolving facility that is based on the unbilled work-in-progress (as defined under the receivables finance agreement) activities in the Company's U.K. operations ("Lloyds Tranche B"). The borrowing limit of Lloyds Tranche B is $4,308 (£3,000) based on 75% of eligible work-in-progress from temporary contracting and 25% of eligible work-in-progress from permanent recruitment activities. For both tranches, borrowings may be made with an interest rate based on a base rate as determined by Lloyds Bank PLC, based on the Bank of England base rate, plus 1.75%.

The Lloyds Agreement contains various restrictions and covenants including (1) that true credit note dilution may not exceed 5%, measured at audit on a regular basis; (2) debt turn may not exceed 55 days over a three month rolling period; (3) dividends by the U.K. Borrower to the Company are restricted to the value of post-tax profits; and (4) at the end of each month, there must be a minimum excess availability of $2,872 (£2,000).

The details of the Lloyds Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Borrowing capacity	$	6,402
Less: outstanding borrowing	(508		)
Additional borrowing availability	$	5,894
Interest rates on outstanding borrowing	2.25		%

The Company was in compliance with all financial covenants under the Lloyds Agreement as of March 31, 2016.

Facility Agreement with National Australia Bank Limited

On October 30, 2015, Hudson Global Resources (Aust) Pty Limited ("Hudson Australia") and Hudson Global Resources (NZ) Limited ("Hudson New Zealand"), both subsidiaries of Hudson Global, Inc., entered into a Finance Agreement, dated as of October 27, 2015 (the "Finance Agreement"), with National Australia Bank Limited ("NAB"), a NAB Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "Australian Receivables Agreement"), with NAB and a BNZ Corporate Receivables Facility Agreement, dated as of October 27, 2015 (the "New Zealand Receivables Agreement"), with Bank of New Zealand ("BNZ").

The Finance Agreement provides a bank guarantee facility of up to $2,297 (AUD 3,000) for Hudson Australia and Hudson New Zealand. The Finance Agreement matures and becomes due and payable on October 27, 2018. A fee equal to 1.5% per annum will be charged on each bank guarantee issued under the Finance Agreement. The Finance Agreement bears a fee, payable semiannually in arrears, equal to 0.3% per annum of NAB’s commitment under the Finance Agreement.

The Australian Receivables Agreement provides a receivables facility of up to $19,143 (AUD 25,000) for Hudson Australia, which is based on an agreed percentage of eligible accounts receivable, and of which up to $3,063 (AUD 4,000) may be used to support the working capital requirements of operations in China, Hong Kong and Singapore. The Australian Receivables Agreement does not have a stated maturity date and can be terminated by Hudson Australia or NAB upon 90 days written notice. Borrowings under the Australian Receivables Agreement may be made with an interest rate based on a market rate plus a margin of 1.5% per annum. The Australian Receivable Agreement bears a fee, payable monthly in advance, equal to $5 (AUD 6) per month.

The New Zealand Receivables Agreement provides a receivables facility of up to $3,455 (NZD 5,000) for Hudson New Zealand, which is based on an agreed percentage of eligible accounts receivable. The New Zealand Receivables Agreement does not have a stated maturity date and can be terminated by Hudson New Zealand or BNZ upon 90 days written notice. Borrowings under the New Zealand Receivables Agreement may be made with an interest rate based on a market rate. The New Zealand Receivables Agreement bears a fee, payable monthly in advance, equal to $1 (NZD 1) per month.

The details of the NAB Finance Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Finance Agreement:
Financial guarantee capacity	$	2,297
Less: outstanding financial guarantees	(1,855		)
Additional availability for financial guarantees	$	442
Interest rates on outstanding financial guarantees	1.80		%
Australian Receivables Agreement:
Borrowing capacity	$	14,503
Less: outstanding borrowing	(5,206		)
Additional borrowing availability	$	9,297
Interest rates on outstanding borrowing	3.65		%
New Zealand Receivables Agreement:
Borrowing capacity	$	1,841
Less: outstanding borrowing	(56		)
Additional borrowing availability	$	1,785
Interest rates on outstanding borrowing	4.60		%

Amounts owing under the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement are secured by substantially all of the assets of Hudson Australia and Hudson New Zealand. Each of the Finance Agreement, the Australian Receivables Agreement and the New Zealand Receivables Agreement contains various restrictions and covenants applicable to the Obligors, including: a requirement that the Obligors maintain (1) a minimum Fixed Charge Coverage Ratio (as defined in the NAB Facility Agreement) of 1.50x as of the last day of each calendar quarter; and (2) a minimum Receivables Ratio (as defined by the NAB Facility Agreement) of 1.20x.

The Company was in compliance with all financial covenants under the NAB Facility Agreement as of March 31, 2016.

Loan and Security Agreement with Siena Lending Group LLC

Upon the sale of US IT business, the Company exercised its right to terminate its loan and security agreement with Siena Lending Group LLC ("Siena"). The Company paid Siena a termination fee of $161 recognized as a reduction to the gain on sale of the US IT business and $417 of cash to secure an outstanding letter of credit for a real estate lease. Siena will return the restricted cash to the Company once the outstanding letter of credit is returned to Siena.

Other Credit Agreements

The Company also has lending arrangements with local banks through its subsidiaries in the Belgium and Singapore. The Belgium subsidiary has a $1,138 (€1,000) overdraft facility. Borrowings under the Belgium arrangement may be made using an interest rate based on the one-month EURIBOR plus a margin, and the interest rate was 2.75% as of March 31, 2016. The lending arrangement in Belgium has no expiration date and can be terminated with a 15-day notice period. In Singapore, the Company’s subsidiary can borrow up to $148 (SGD 200) for working capital purposes. Interest on borrowings under the Singapore overdraft facility is based on the Singapore Prime Rate plus a margin of 1.75%, and it was 6.00% on March 31, 2016. The Singapore overdraft facility expires annually each August, but can be renewed for one year periods at that time. There were no outstanding borrowings under the Belgium and Singapore lending agreements as of March 31, 2016.

The average aggregate monthly outstanding borrowings under the Lloyds Agreement, NAB Facility Agreement and the credit agreements in Belgium and Singapore were $5,841 for the three months ended March 31,2016. The weighted average interest rate on all outstanding borrowings for the three months ended March 31,2016 was 3.59%.

The Company continues to use the aforementioned credit to support its ongoing global working capital requirements, capital expenditures and other corporate purposes and to support letters of credit. Letters of credit and bank guarantees are used primarily to support office leases.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

NOTE 16 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Accumulated other comprehensive income (loss), net of tax, consisted of the following:

	March 31,		December 31,
	2016		2015
Foreign currency translation adjustments	$	10,827	$	10,159
Pension plan obligations	135		133
Accumulated other comprehensive income (loss)	$	10,962	$	10,292

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STOCKHOLDERS' EQUITY (Notes)

3 Months Ended

Mar. 31, 2016

Stockholders' Equity Attributable to Parent [Abstract]

Treasury Stock [Text Block]

STOCKHOLDERS' EQUITY

 In December 2015, the Company's Board of Directors determined that the Company intends to pay a regular, quarterly cash dividend on its common stock. The Company's Board of Directors declared a cash dividend of $0.05 per share paid on March 25, 2016 to shareholders of record as of March 15, 2016. As a result, as of March 31, 2016, the Company paid $1,713 in dividends to shareholders. The cash dividend payment is applied to accumulated deficit.

On July 30, 2015, the Company announced that its Board of Directors authorized the repurchase of up to $10,000 of the Company's common stock. The Company intends to make purchases from time to time as market conditions warrant. This authorization does not expire. During the three months ended March 31,2016, the Company repurchased 366,113 shares for a total cost of $985. As of March 31, 2016, under the July 30, 2015 authorization, the Company had repurchased 893,747 shares for a total cost of $2,372.

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SEGMENT AND GEOGRAPHIC DATA

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC DATA

SEGMENT AND GEOGRAPHIC DATA

Segment Reporting

The Company operates in three reportable segments: the Hudson regional businesses of Hudson Americas, Hudson Asia Pacific, and Hudson Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, human resources, accounting, administration, tax and treasury, the majority of which are attributable to and have been allocated to the reportable segments. Segment information is presented in accordance with ASC 280, "Segments Reporting." This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable, net and long-lived assets are the only significant assets separated by segment for internal reporting purposes.

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Elimination			Total
For The Three Months Ended March 31, 2016
Revenue, from external customers	$	3,837		$	51,071		$	46,319		$	—		$	—		$	101,227
Inter-segment revenue	—			—			62			—			(62		)	—
Total revenue	$	3,837		$	51,071		$	46,381		$	—		$	(62	)	$	101,227
Gross margin, from external customers	$	3,341		$	18,771		$	19,150		$	—		$	—		$	41,262
Inter-segment gross margin	(2		)	(60		)	62			—			—			—
Total gross margin	$	3,339		$	18,711		$	19,212		$	—		$	—		$	41,262
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	(16	)	$	197		$	484		$	(28	)	$	—		$	637
EBITDA (loss) (a)	$	162		$	(1,231	)	$	(330	)	$	(1,755	)	$	—		$	(3,154	)
Depreciation and amortization	22			404			183			79			—			688
Intercompany interest income (expense), net	—			—			(57		)	57			—			—
Interest income (expense), net	—			(40		)	(14		)	—			—			(54		)
Income (loss) from continuing operations before income taxes	$	140		$	(1,675	)	$	(584	)	$	(1,777	)	$	—		$	(3,896	)
As of March 31, 2016
Accounts receivable, net	$	3,162		$	31,331		$	29,715		$	—		$	—		$	64,208
Long-lived assets, net of accumulated depreciation and amortization	$	28		$	7,475		$	1,851		$	595		$	—		$	9,949
Total assets	$	7,243		$	51,313		$	54,047		$	9,235		$	—		$	121,838

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended March 31, 2015
Revenue, from external customers	$	10,978		$	53,139		$	60,200		$	—		$	—		$	124,317
Inter-segment revenue	—			—			14			—			(14		)	—
Total revenue	$	10,978		$	53,139		$	60,214		$	—		$	(14	)	$	124,317
Gross margin, from external customers	$	4,621		$	20,876		$	22,407		$	—		$	—		$	47,904
Inter-segment gross margin	(7		)	(31		)	37			—			1			—
Total gross margin	$	4,614		$	20,845		$	22,444		$	—		$	1		$	47,904
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	421		$	8		$	880		$	34		$	—		$	1,343
EBITDA (loss) (a)	$	(1,620	)	$	804		$	(2,150	)	$	(2,626	)	$	—		$	(5,592	)
Depreciation and amortization	102			671			228			110			—			1,111
Intercompany interest income (expense), net	—			—			(130		)	134			(4		)	—
Interest income (expense), net	(33		)	(42		)	(5		)	—			—			(80		)
Income (loss) from continuing operations before income taxes	$	(1,755	)	$	91		$	(2,513	)	$	(2,602	)	$	(4	)	$	(6,783	)
As of March 31, 2015
Accounts receivable, net	$	6,934		$	31,957		$	40,618		$	—		$	—		$	79,509
Long-lived assets, net of accumulated depreciation and amortization	$	535		$	7,300		$	2,073		$	989		$	—		$	10,897
Total assets	$	9,423		$	49,300		$	58,811		$	3,637		$	—		$	121,171

(a) Securities and Exchange Commission ("SEC") Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability.

Geographic Data Reporting

A summary of revenues for the three months ended March 31, 2016 and 2015 and long-lived assets and net assets by geographic area as of March 31, 2016 and 2015 were as follows: 

	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas			Total
For The Three Months Ended March 31, 2016
Revenue (a)	$	34,196	$	39,132	$	3,634	$	12,123	$	11,939	$	203		$	101,227
For The Three Months Ended March 31, 2015
Revenue (a)	$	38,341	$	39,041	$	10,826	$	21,859	$	14,098	$	152		$	124,317
As of March 31, 2016
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,684	$	4,191	$	623	$	167	$	3,284	$	—		$	9,949
Net assets	$	15,771	$	10,046	$	8,632	$	8,211	$	13,435	$	(58	)	$	56,037
As of March 31, 2015
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,752	$	4,629	$	1,512	$	321	$	2,671	$	12		$	10,897
Net assets	$	15,141	$	11,633	$	3,742	$	8,866	$	11,088	$	(18	)	$	50,452

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment and intangibles. Corporate assets are included in the United States.

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DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The carrying amounts of the classes of assets and liabilities from the Legal eDiscovery business and Sweden operations included in discontinued operations were as follows:

	March 31, 2016						December 31, 2015
	eDiscovery		Sweden		Total		eDiscovery		Sweden		Total
Total current assets	$	38	$	—	$	38	$	49	$	32	$	81
Total liabilities (a)	$	1,085	$	10	$	1,095	$	1,439	$	4	$	1,443

(a) Total liabilities primarily consisted of restructuring liabilities for lease termination payments.

Reported results for the discontinued operations by period were as follows:

	Three Months Ended March 31, 2016								Three Months Ended March 31, 2015
	eDiscovery			Sweden		Total			eDiscovery			Sweden			Total
Revenue	$	—		$	—	$	—		$	(1	)	$	—		$	(1	)
Reorganization expenses	(139		)	—		(139		)	363			(6		)	357
Gain (loss) from sale and liquidation of discontinued operations	—			—		—			82			—			82
Income (loss) from discontinued operations before income taxes	109			—		109			(193		)	(28		)	(221		)
Provision (benefit) for income taxes	26			—		26			(37		)	—			(37		)
Income (loss) from discontinued operations	$	83		$	—	$	83		$	(156	)	$	(28	)	$	(184	)

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REVENUE, DIRECT COSTS AND GROSS MARGIN (Tables)

3 Months Ended

Mar. 31, 2016

Revenue, Direct Costs and Gross Margin [Abstract]

Revenue, direct costs and gross margin

The Company’s revenue, direct costs and gross margin were as follows: 

	Three Months Ended March 31, 2016
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	65,856	$	26,572	$	8,799	$	101,227
Direct costs (1)	57,222		574		2,169		59,965
Gross margin	$	8,634	$	25,998	$	6,630	$	41,262
	Three Months Ended March 31, 2015
	Temporary Contracting		Permanent Recruitment		Other		Total
Revenue	$	86,580	$	28,106	$	9,631	$	124,317
Direct costs (1)	73,616		485		2,312		76,413
Gross margin	$	12,964	$	27,621	$	7,319	$	47,904

(1) Direct costs in Temporary Contracting include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, rent and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. Permanent Recruitment and Other category include direct costs for out-of-pocket expenses and third party suppliers. The region where services are provided, the mix of contracting and permanent recruitment, and the functional nature of the staffing services provided can affect gross margin. The salaries, commissions, payroll taxes and employee benefits related to recruitment professionals are included under the caption "Selling, general and administrative expenses" in the Condensed Consolidated Statement of Operations.

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of share-based compensation, restricted stock quantity and vesting conditions

A summary of the quantity and vesting conditions for stock-based units granted to the Company's employees for the three months ended March 31, 2016 was as follows:

Vesting conditions	Number of Restricted Stock Units Granted
Performance and service conditions (1) (2)	500,000

(1) The performance conditions with respect to restricted stock units may be satisfied as follows: 

(a) For employees from the Americas, Asia Pacific and Europe 80% of the restricted stock units may be earned on the basis of performance as measured by a "regional adjusted EBITDA," and 20% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA"; and

(b) For employees from the Corporate office 100% of the restricted stock units may be earned on the basis of performance as measured by a "group adjusted EBITDA."

(2) To the extent restricted stock units are earned on the basis of performance, such restricted stock units will vest on the basis of service as follows:

(a) One-third of the restricted stock units will vest on the first anniversary of the grant date;

(b) One-third of the restricted stock units will vest on the second anniversary of the grant date; and

(c) One-third of the restricted stock units will vest on the third anniversary of the grant date; provided that, in each case, the employee remains employed by the Company from the grant date through the applicable service vesting date.

Schedule of stock-based compensation expense

For the three months ended March 31, 2016 and 2015, the Company’s stock-based compensation expense related to stock options, restricted stock and restricted stock units were as follows:

	Three Months Ended
	March 31,
	2016		2015
Stock options	$	5	$	—
Restricted stock	240		385
Restricted stock units	127		148
Total	$	372	$	533

Changes in stock options

Changes in the Company’s stock options for the three months ended March 31,2016 and 2015 were as follows: 

	Three Months Ended March 31,
	2016				2015
	Number of Options		Weighted Average Exercise Price per Share		Number of Options		Weighted Average Exercise Price per Share
Options outstanding at January 1,	206,000		$	8.13	756,800		$	8.78
Expired/forfeited	(16,000	)	15.86		(109,000	)	13.25
Options outstanding at March 31,	190,000		$	7.48	647,800		$	8.03
Options exercisable at March 31,	165,000		$	8.24	647,800		$	8.03

Changes in restricted stock

Changes in the Company’s restricted stock for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016			2015
	Number of Shares of Restricted Stock	Weighted Average Grant Date Fair Value		Number of Shares of Restricted Stock		Weighted Average Grant Date Fair Value
Unvested restricted stock at January 1,	680,000	$	1.60	803,999		$	3.00
Granted	—	—		590,100		2.84
Vested	—	—		(132,775	)	3.50
Forfeited	—	—		(171,622	)	3.17
Unvested restricted stock at March 31,	680,000	$	1.60	1,089,702		$	2.82

Changes in restricted stock units

Changes in the Company’s restricted stock units for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016				2015
	Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value		Number of Restricted Stock Units		Weighted Average Grant-Date Fair Value
Unvested restricted stock units at January 1,	—		$	—	119,940		$	3.57
Granted	530,687		2.79		144,664		2.84
Vested	(30,687	)	2.73		(56,310	)	2.95
Forfeited	—		—		(42,500	)	3.21
Unvested restricted stock units at March 31,	500,000		$	2.79	165,794		$	3.24

Schedule of expenses and contributions for the prior years' employer-matching liability for the 401(k) plan

For the three months ended March 31,2016 and 2015, the Company’s current year expenses and contributions to satisfy the prior years’ employer-matching liability for the 401(k) plan were as follows:

	Three Months Ended
	March 31,
($ in thousands, except otherwise stated)	2016		2015
Expense recognized for the 401(k) plan	$	20	$	75
Contributions to satisfy prior years' employer-matching liability
Number of shares of the Company's common stock issued (in thousands)	—		116
Market value per share of the Company's common stock on contribution date (in dollars)	$	—	$	2.71
Non-cash contribution made for employer matching liability	$	—	$	314

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Open Years Subject to Tax Examination

As of March 31, 2016, the Company's open tax years, which remain subject to examination by the relevant tax authorities, were principally as follows:

	Year
Earliest tax years which remain subject to examination by the relevant tax authorities:
U.S. Federal	2012
Majority of U.S. state and local jurisdictions	2011
United Kingdom	2014
Australia	2011
Majority of other non-U.S. jurisdictions	2010

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EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

A reconciliation of the numerators and denominators of the basic and diluted earnings (loss) per share calculations for the three months ended March 31,2016 and 2015 were as follows:

	Three Months Ended March 31,
	2016			2015
Earnings (loss) per share ("EPS"):
EPS - basic and diluted:
Income (loss) from continuing operations	$	(0.10	)	$	(0.20	)
Income (loss) from discontinued operations	—			(0.01		)
Net income (loss)	$	(0.10	)	$	(0.21	)
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$	(3,570	)	$	(6,654	)
Income (loss) from discontinued operations	83			(184		)
Net income (loss)	$	(3,487	)	$	(6,838	)
EPS denominator (in thousands):
Weighted average common stock outstanding - basic	34,631			33,053
Common stock equivalents: stock options and other stock-based awards (a)	—			—
Weighted average number of common stock outstanding - diluted	34,631			33,053

(a) For the periods in which net losses are presented, the diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 7 for further details on outstanding stock options, unvested restricted stock units and unvested restricted stock) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

Schedule of antidilutive securities excluded from computation of earnings per share

The weighted average number of shares outstanding used in the computation of diluted net income (loss) per share for the three months ended March 31, 2016 and 2015 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:

	Three Months Ended
	March 31,
	2016	2015
Unvested restricted stock	680,000	1,089,702
Unvested restricted stock units	500,000	165,794
Stock options	165,000	647,800
Total	1,345,000	1,903,296

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RESTRICTED CASH (Tables)

3 Months Ended

Mar. 31, 2016

Restricted Cash and Investments [Abstract]

Schedule of restricted cash and cash equivalents

A summary of the Company’s restricted cash included in the accompanying Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 was as follows: 

	March 31, 2016		December 31, 2015
Included under the caption "Prepaid and other":
Client guarantees	$	133	$	118
Other	115		110
Total amount under the caption "Prepaid and other"	$	248	$	228
Included under the caption "Other assets":
Collateral accounts	$	179	$	229
Rental deposits	449		480
Total amount under the caption "Other assets"	$	628	$	709
Total restricted cash	$	876	$	937

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PROTPERTY AND EQUIPMENT, NET (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment, Net [Abstract]

Property, plant and equipment

As of March 31, 2016 and December 31, 2015, property and equipment, net, was as follows:

	March 31, 2016		December 31, 2015
Computer equipment	$	6,360	$	5,911
Furniture and equipment	2,116		2,668
Capitalized software costs	18,308		17,946
Leasehold improvements	15,396		15,522
	42,180		42,047
Less: accumulated depreciation and amortization	34,268		34,119
Property and equipment, net	$	7,912	$	7,928

Schedule of capital leased obligations

A summary of the Company’s equipment acquired under capital lease agreements were as follows:

	March 31, 2016		December 31, 2015
Capital lease obligation, current	$	66	$	62
Capital lease obligation, non-current	$	218	$	229

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GOODWILL (Tables)

3 Months Ended

Mar. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The goodwill related to the earn-out payment made in 2010 for the Company’s 2007 acquisition of the businesses of Tong Zhi (Beijing) Consulting Service Ltd and Guangzhou Dong Li Consulting Service Ltd.

	Carrying Value
	2016
Goodwill, January 1,	$	1,938
Currency translation	14
Goodwill, March 31,	$	1,952

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BUSINESS REORGANIZATION EXPENSES (Tables)

3 Months Ended

Mar. 31, 2016

Restructuring and Related Activities [Abstract]

Business reorganization expenses

Business reorganization expenses for the three months ended March 31, 2016 and 2015 by plan were as follows:

	Three Months Ended March 31,
	2016		2015
Previous Plans	$	223	$	1,343
2016 Exit Plan	414		—
Total reorganization expenses in continuing operations	$	637	$	1,343

Changes in accrued business reorganization expenses

Changes in the accrued business reorganization expenses for the three months ended March 31,2016 were as follows:

	December 31, 2015		Changes in Estimate			Additional Charges		Payments			March 31, 2016
Lease termination payments	$	2,970	$	186		$	190	$	(272	)	$	3,074
Employee termination benefits	1,186		—			170		(386		)	970
Other associated costs	208		(19		)	110		(279		)	20
Total	$	4,364	$	167		$	470	$	(937	)	$	4,064

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of asset retirement obligations

The Company’s asset retirement obligations that are included in the Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016		December 31, 2015
Total asset retirement obligations	$	1,989	$	1,962

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CREDIT AGREEMENTS (Tables)

3 Months Ended

Mar. 31, 2016

National Australia Bank Limited and Bank of New Zealand [Member]

Line of Credit Facility [Line Items]

Schedule of Line of Credit Facilities

The details of the NAB Finance Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Finance Agreement:
Financial guarantee capacity	$	2,297
Less: outstanding financial guarantees	(1,855		)
Additional availability for financial guarantees	$	442
Interest rates on outstanding financial guarantees	1.80		%
Australian Receivables Agreement:
Borrowing capacity	$	14,503
Less: outstanding borrowing	(5,206		)
Additional borrowing availability	$	9,297
Interest rates on outstanding borrowing	3.65		%
New Zealand Receivables Agreement:
Borrowing capacity	$	1,841
Less: outstanding borrowing	(56		)
Additional borrowing availability	$	1,785
Interest rates on outstanding borrowing	4.60		%

Lloyds

Line of Credit Facility [Line Items]

Schedule of Line of Credit Facilities

The details of the Lloyds Agreement as of March 31, 2016 were as follows:

	March 31, 2016
Borrowing capacity	$	6,402
Less: outstanding borrowing	(508		)
Additional borrowing availability	$	5,894
Interest rates on outstanding borrowing	2.25		%

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ACCUMUATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss), net of tax, consisted of the following:

	March 31,		December 31,
	2016		2015
Foreign currency translation adjustments	$	10,827	$	10,159
Pension plan obligations	135		133
Accumulated other comprehensive income (loss)	$	10,962	$	10,292

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SEGMENT AND GEOGRAPHIC DATA (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of segment reporting information

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Elimination			Total
For The Three Months Ended March 31, 2016
Revenue, from external customers	$	3,837		$	51,071		$	46,319		$	—		$	—		$	101,227
Inter-segment revenue	—			—			62			—			(62		)	—
Total revenue	$	3,837		$	51,071		$	46,381		$	—		$	(62	)	$	101,227
Gross margin, from external customers	$	3,341		$	18,771		$	19,150		$	—		$	—		$	41,262
Inter-segment gross margin	(2		)	(60		)	62			—			—			—
Total gross margin	$	3,339		$	18,711		$	19,212		$	—		$	—		$	41,262
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	(16	)	$	197		$	484		$	(28	)	$	—		$	637
EBITDA (loss) (a)	$	162		$	(1,231	)	$	(330	)	$	(1,755	)	$	—		$	(3,154	)
Depreciation and amortization	22			404			183			79			—			688
Intercompany interest income (expense), net	—			—			(57		)	57			—			—
Interest income (expense), net	—			(40		)	(14		)	—			—			(54		)
Income (loss) from continuing operations before income taxes	$	140		$	(1,675	)	$	(584	)	$	(1,777	)	$	—		$	(3,896	)
As of March 31, 2016
Accounts receivable, net	$	3,162		$	31,331		$	29,715		$	—		$	—		$	64,208
Long-lived assets, net of accumulated depreciation and amortization	$	28		$	7,475		$	1,851		$	595		$	—		$	9,949
Total assets	$	7,243		$	51,313		$	54,047		$	9,235		$	—		$	121,838

	Hudson Americas			Hudson Asia Pacific			Hudson Europe			Corporate			Inter- segment elimination			Total
For The Three Months Ended March 31, 2015
Revenue, from external customers	$	10,978		$	53,139		$	60,200		$	—		$	—		$	124,317
Inter-segment revenue	—			—			14			—			(14		)	—
Total revenue	$	10,978		$	53,139		$	60,214		$	—		$	(14	)	$	124,317
Gross margin, from external customers	$	4,621		$	20,876		$	22,407		$	—		$	—		$	47,904
Inter-segment gross margin	(7		)	(31		)	37			—			1			—
Total gross margin	$	4,614		$	20,845		$	22,444		$	—		$	1		$	47,904
Business reorganization expenses (recovery) and impairment of long lived assets expense	$	421		$	8		$	880		$	34		$	—		$	1,343
EBITDA (loss) (a)	$	(1,620	)	$	804		$	(2,150	)	$	(2,626	)	$	—		$	(5,592	)
Depreciation and amortization	102			671			228			110			—			1,111
Intercompany interest income (expense), net	—			—			(130		)	134			(4		)	—
Interest income (expense), net	(33		)	(42		)	(5		)	—			—			(80		)
Income (loss) from continuing operations before income taxes	$	(1,755	)	$	91		$	(2,513	)	$	(2,602	)	$	(4	)	$	(6,783	)
As of March 31, 2015
Accounts receivable, net	$	6,934		$	31,957		$	40,618		$	—		$	—		$	79,509
Long-lived assets, net of accumulated depreciation and amortization	$	535		$	7,300		$	2,073		$	989		$	—		$	10,897
Total assets	$	9,423		$	49,300		$	58,811		$	3,637		$	—		$	121,171

(a) Securities and Exchange Commission ("SEC") Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability.

Revenue and long-lived assets by geographic area

A summary of revenues for the three months ended March 31, 2016 and 2015 and long-lived assets and net assets by geographic area as of March 31, 2016 and 2015 were as follows: 

	United Kingdom		Australia		United States		Continental Europe		Other Asia Pacific		Other Americas			Total
For The Three Months Ended March 31, 2016
Revenue (a)	$	34,196	$	39,132	$	3,634	$	12,123	$	11,939	$	203		$	101,227
For The Three Months Ended March 31, 2015
Revenue (a)	$	38,341	$	39,041	$	10,826	$	21,859	$	14,098	$	152		$	124,317
As of March 31, 2016
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,684	$	4,191	$	623	$	167	$	3,284	$	—		$	9,949
Net assets	$	15,771	$	10,046	$	8,632	$	8,211	$	13,435	$	(58	)	$	56,037
As of March 31, 2015
Long-lived assets, net of accumulated depreciation and amortization (b)	$	1,752	$	4,629	$	1,512	$	321	$	2,671	$	12		$	10,897
Net assets	$	15,141	$	11,633	$	3,742	$	8,866	$	11,088	$	(18	)	$	50,452

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment and intangibles. Corporate assets are included in the United States.

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DESCRIPTION OF BUSINESS (Details)	3 Months Ended
	Mar. 31, 2016 countries segments
Description of Business [Abstract]
Number of Countries in which Entity Operates | countries	12
Number of Reportable Segments | segments	3

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DIVESTITURES (Details) - USD ($) $ in Thousands			3 Months Ended
	Jun. 15, 2015	May. 07, 2015	Mar. 31, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Pre-tax Gain (loss)			$ 0	$ 356
Hudson Information Technology (US) Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 16,977
Pre-tax Gain (loss)			$ 0	$ (396)
Netherlands Business Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses		$ 9,029
Proceeds From Divestiture of Business, Cash Retained		$ 1,135

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DISCONTINUED OPERATIONS - Balance Sheet Disclosures (Details) - Discontinued Operations - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total current assets	$ 38	$ 81
Total liabilities (a)	1,095	1,443
eDiscovery
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total current assets	38	49
Total liabilities (a)	1,085	1,439
Sweden
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total current assets	0	32
Total liabilities (a)	$ 10	$ 4

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DISCONTINUED OPERATIONS - Income Statement Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income (loss) from discontinued operations, net of income taxes	$ 83	$ (184)
Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0	(1)
Disposal Group, Including Discontinued Operation, Restructuring Charges	(139)	357
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0	82
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	109	(221)
Discontinued Operation, Tax Effect of Discontinued Operation	26	(37)
Income (loss) from discontinued operations, net of income taxes	83	(184)
Discontinued Operations | eDiscovery
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0	(1)
Disposal Group, Including Discontinued Operation, Restructuring Charges	(139)	363
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0	82
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	109	(193)
Discontinued Operation, Tax Effect of Discontinued Operation	26	(37)
Income (loss) from discontinued operations, net of income taxes	83	(156)
Discontinued Operations | Sweden
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenue	0	0
Disposal Group, Including Discontinued Operation, Restructuring Charges	0	(6)
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax	0	0
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax	0	(28)
Discontinued Operation, Tax Effect of Discontinued Operation	0	0
Income (loss) from discontinued operations, net of income taxes	$ 0	$ (28)

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REVENUE, DIRECT COSTS AND GROSS MARGIN Revenue, Direct Costs and Gross Margin (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue Direct Costs And Gross Margin Line Items [Line Items]
Revenue	$ 101,227	$ 124,317
Direct costs	59,965	76,413
Gross margin	41,262	47,904
Temporary Contracting
Revenue Direct Costs And Gross Margin Line Items [Line Items]
Revenue	65,856	86,580
Direct costs	57,222	73,616
Gross margin	8,634	12,964
Permanent Recruitment
Revenue Direct Costs And Gross Margin Line Items [Line Items]
Revenue	26,572	28,106
Direct costs	574	485
Gross margin	25,998	27,621
Other
Revenue Direct Costs And Gross Margin Line Items [Line Items]
Revenue	8,799	9,631
Direct costs	2,169	2,312
Gross margin	$ 6,630	$ 7,319

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STOCK-BASED COMPENSATION Stock-Based Compensation (Details) AUD in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) shares	Mar. 31, 2015 USD ($) shares	Dec. 31, 2015	Mar. 31, 2016 AUD shares	Mar. 31, 2016 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for issuance to participants | shares				261,639	261,639
Share-based compensation arrangement award vesting period	5 years
Stock-based compensation	$ 372	$ 533
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance and service conditions | shares	500,000
Granted, Number of share of restricted stock (shares) | shares	530,687	144,664
Stock-based compensation	$ 127	$ 148
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Option Award Exercise Price as a Percentage of the Fair Market Value of a Share of Common Stock			100.00%
Stock-based compensation	$ 5	$ 0
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of share of restricted stock (shares) | shares	0	590,100
Stock-based compensation	$ 240	$ 385
Non-Employee Director | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, Number of share of restricted stock (shares) | shares	30,687
Corporate | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of Gross Margin Ratio	100.00%
Americas, Asia Pacific and Europe | Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of EBITDA	80.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other that Options, Percentage of Shares Issued Based on Performance of Gross Margin Ratio	20.00%
Financial Guarantee Facility | National Australia Bank Limited and Bank of New Zealand [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Line of Credit Facility, Financial Guarantee Capacity				AUD 3,000	$ 2,297
Line of Credit, Outstanding Financial Guarantee					1,855
Additional availability for financial guarantee					$ 442
New Zealand Receivables Agreement [Member] | National Australia Bank Limited and Bank of New Zealand [Member] | NEW ZEALAND
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
LIne of Credit Facility, Notice Period	90 days

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STOCK-BASED COMPENSATION Stock options activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized	$ 12
Weighted average service period	7 months 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, Number of Options, At the Beginning of the Year (shares)	206,000	756,800
Expired, number of options (shares)	(16,000)	(109,000)
Options outstanding, Number of Options, At the End of the Period (shares)	190,000	647,800
Options exercisable, Number of Options, At the End of the Period (shares)	165,000	647,800
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Options outstanding, weighted average exercise price per share, At the Beginning of the Year (usd per share)	$ 8.13	$ 8.78
Expired, weighted average exercise price per share (usd per share)	15.86	13.25
Options outstanding, weighted average exercise price per share, At the End of the Period (usd per share)	7.48	8.03
Options exercisable, weighted average exercise price per share, At the End of the Period (usd per share)	$ 8.24	$ 8.03

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STOCK-BASED COMPENSATION Restricted stock (Details) - Restricted stock - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized	$ 462
Weighted average service period	6 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the Beginning of the Year (shares)	680,000	803,999
Granted, Number of share of restricted stock (shares)	0	590,100
Vested, number of share of restricted stock (shares)	0	(132,775)
Forfeited, number of share of restricted stock (shares)	0	(171,622)
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the End of the Period (shares)	680,000	1,089,702
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Non-vested restricted stock (units), weighted average grant date fair value, At the Beginning of the Year (usd per share)	$ 1.60	$ 3.00
Granted, weighted average grant date fair value (usd per share)	0.00	2.84
Vested, weighted average grant date fair value (usd per share)	0.00	3.50
Forfeited, weighted average grant date fair value (usd per share)	0.00	3.17
Non-vested restricted stock (units), weighted average grant date fair value, At the End of the Period (usd per share)	$ 1.60	$ 2.82

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STOCK-BASED COMPENSATION Restricted stock units (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation cost not yet recognized	$ 1,100
Weighted average service period	1 year 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the Beginning of the Year (shares)	0	119,940
Granted, Number of share of restricted stock (shares)	530,687	144,664
Vested, number of share of restricted stock (shares)	(30,687)	(56,310)
Forfeited, number of share of restricted stock (shares)	0	(42,500)
Non-vested restricted stock (units), number of shares of restricted stock (unit), At the End of the Period (shares)	500,000	165,794
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Non-vested restricted stock (units), weighted average grant date fair value, At the Beginning of the Year (usd per share)	$ 0.00	$ 3.57
Granted, weighted average grant date fair value (usd per share)	2.79	2.84
Vested, weighted average grant date fair value (usd per share)	2.73	2.95
Forfeited, weighted average grant date fair value (usd per share)	0.00	3.21
Non-vested restricted stock (units), weighted average grant date fair value, At the End of the Period (usd per share)	$ 2.79	$ 3.24
Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted, Number of share of restricted stock (shares)	30,687

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STOCK-BASED COMPENSATION Defined contribution plan and non-cash employer-matching contributions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Discolusre of Defined Contribution Plan Related Costs, Share-based Payments [Abstract]
Defined contribution pan, maximum annual contribution per employee percent	15.00%
Defined contribution plan, employer matching contribution percent	3.00%
Expense recognized for the 401(k) plan	$ 20	$ 75
Number of shares of the Company's common stock issued (in thousands)	0	116
Market value per share of the Company's common stock on contribution date (in dollars)	$ 0.00	$ 2.71
Non-cash contribution made for employer matching liability	$ 0	$ 314

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Tax open years subject to examination [Line Items]
Income tax benefit (provision)	$ (326)	$ (129)
Pre-tax income (loss)	$ (3,896)	$ (6,783)
Effective income tax rate	8.40%	1.90%
U.S. Federal statutory rate	35.00%
Unrecognized tax benefits	$ 2,316	$ 2,279
Accrued interest and penalties	566	536
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	$ 14	$ 14
U.S. Federal [Member]
Tax open years subject to examination [Line Items]
Open Tax Year	2012
Other U.S. state and local juristictions [Member]
Tax open years subject to examination [Line Items]
Open Tax Year	2011
United Kingdon
Tax open years subject to examination [Line Items]
Open Tax Year	2014
Australia
Tax open years subject to examination [Line Items]
Open Tax Year	2011
Other Jurisdictions [Member]
Tax open years subject to examination [Line Items]
Open Tax Year	2010
Minimum
Tax open years subject to examination [Line Items]
Possible decrease of unrecognized tax benefits	$ 200
Maximum
Tax open years subject to examination [Line Items]
Possible decrease of unrecognized tax benefits	$ 400

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EARNINGS (LOSS) PER SHARE (Computation of basic and diluted earnings (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings (loss) per share (EPS):
Income (loss) from continuing operations (in dollars per share)	$ (0.10)	$ (0.20)
Income (loss) from discontinued operations (in dollars per share)	0.00	(0.01)
Basic and diluted earnings (loss) per share	$ (0.10)	$ (0.21)
EPS numerator - basic and diluted:
Income (loss) from continuing operations	$ (3,570)	$ (6,654)
Income (loss) from discontinued operations, net of income taxes	83	(184)
Net income (loss)	$ (3,487)	$ (6,838)
EPS denominator:
Weighted-average common stock outstanding - basic (in shares)	34,631	33,053
Common stock equivalents: stock options and other stock-based awards (a)	0	0
Weighted-average number of common stock outstanding - diluted (in shares)	34,631	33,053

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EARNINGS (LOSS) PER SHARE (Antidilutive securities excluded from the computation of earnings (loss) per share) (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	1,345,000	1,903,296.000
Unvested restricted stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	680,000	1,089,702
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	500,000	165,794
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	165,000	647,800

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RESTRICTED CASH (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 876	$ 937
Prepaid Expenses and Other Current Assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	248	228
Prepaid Expenses and Other Current Assets | Client guarantees
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	133	118
Prepaid Expenses and Other Current Assets | Others
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	115	110
Other Noncurrent Assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	628	709
Other Noncurrent Assets | Collateral accounts
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	179	229
Other Noncurrent Assets | Rental deposits
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 449	$ 480

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PROPERTY AND EQUIPMENT, NET Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Construction in Progress, Gross	$ 392	$ 513
Property, plant and equipment, gross	42,180	42,047
Less: acccumulated depreciation and amortization	34,268	34,119
Property and equipment, net	7,912	7,928
Capital lease obligation, current	66	62
Capital lease obligation, non-current	218	229
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	6,360	5,911
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,116	2,668
Capitalized software costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	18,308	17,946
Leasehold and building improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 15,396	$ 15,522

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GOODWILL (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Goodwill [Roll Forward]
Goodwill, At the Beginning of the Year	$ 1,938
Currency translation	14
Goodwill, At the End of the Period	$ 1,952

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BUSINESS REORGANIZATION EXPENSES (Reorganization expenses by Plan) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Restructuring Cost and Reserve [Line Items]
Business reorganization expenses	$ 637	$ 1,343
Continuing Operations [Member]
Restructuring Cost and Reserve [Line Items]
Business reorganization expenses	637	1,343
Continuing Operations [Member] | Previous Plans [Member]
Restructuring Cost and Reserve [Line Items]
Business reorganization expenses	223	1,343
Continuing Operations [Member] | 2016 Exit Plan [Member]
Restructuring Cost and Reserve [Line Items]
Business reorganization expenses	$ 414	$ 0

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BUSINESS REORGANIZATION EXPENSES (Changes in accrued business reorganization expenses) (Details) - Continuing Operations [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Restructuring Reserve [Roll Forward]
Balance, beginning of year	$ 4,364
Changes in estimate	167
Restructuring Charges	470
Payments	(937)
Balance, end of period	4,064
Lease termination payments
Restructuring Reserve [Roll Forward]
Balance, beginning of year	2,970
Changes in estimate	186
Restructuring Charges	190
Payments	(272)
Balance, end of period	3,074
Employee termination benefits
Restructuring Reserve [Roll Forward]
Balance, beginning of year	1,186
Changes in estimate	0
Restructuring Charges	170
Payments	(386)
Balance, end of period	970
Other associated costs
Restructuring Reserve [Roll Forward]
Balance, beginning of year	208
Changes in estimate	(19)
Restructuring Charges	110
Payments	(279)
Balance, end of period	$ 20

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COMMITMENTS AND CONTINGENCIES (Details) AUD in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016 AUD	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Commitments And Contingencies [Line Items]
Loss contingency accrual		$ 157	$ 109
Asset retirement obligation:
Total asset retirement obligations		1,989	$ 1,962
Key management
Commitments And Contingencies [Line Items]
Usual length of consulting, employment and non-compete agreements	1 year
One-time Termination Benefits | Chief Executive Officer
Commitments And Contingencies [Line Items]
Restructuring Reserve		747
Range of possible loss, maximum		2,000
Australian Receivables Facility [Member] [Domain] | National Australia Bank Limited and Bank of New Zealand [Member]
Commitments And Contingencies [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	AUD 4,000	$ 3,063

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CREDIT AGREEMENTS (Details) € in Thousands, £ in Thousands, SGD in Thousands, NZD in Thousands, AUD in Thousands, $ in Thousands		3 Months Ended
	Aug. 01, 2014 GBP (£)	Mar. 31, 2016 USD ($)	Mar. 31, 2016 AUD	Mar. 31, 2016 NZD	Mar. 31, 2016 SGD	Mar. 31, 2016 GBP (£)	Mar. 31, 2016 USD ($)	Mar. 31, 2016 EUR (€)	Aug. 01, 2014 USD ($)
Lloyds
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	£ 15,000						$ 6,402		$ 21,540
Line of credit facility, covenant, maximum credit dilution		5.00%
Additional borrowing availability							$ 5,894
Interest rates on outstanding borrowing			2.25%	2.25%	2.25%	2.25%	2.25%	2.25%
Minimum availability required						£ 2,000	$ 2,872
Line of Credit Facility, Fair Value of Amount Outstanding							(508)
Lloyds | Credit Facility Lending based on Billed Revenue [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	£ 12,000								17,232
Eligible work in progress temporary receivables	83.00%
Lloyds | Credit Facility Lending based on Unbilled Revenue [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	£ 3,000								$ 4,308
Eligible work in progress temporary receivables	75.00%
Eligible work in progress permanent receivables	25.00%
Lloyds [Member]
Line of Credit Facility [Line Items]
Debt Turns in days		55
National Australia Bank Limited and Bank of New Zealand [Member] | Financial Guarantee Facility
Line of Credit Facility [Line Items]
Financial guarantee capacity			AUD 3,000				2,297
Debt Instrument, Fee Percent		1.50%
Outstanding Borrowings							(1,855)
Additional availability for financial guarantee							$ 442
Interest rates on financial guarantee requested			1.80%	1.80%	1.80%	1.80%	1.80%	1.80%
National Australia Bank Limited and Bank of New Zealand [Member] | Australian Receivables Facility [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			AUD 4,000				$ 3,063
National Australia Bank Limited [Member] | Financial Guarantee Facility
Line of Credit Facility [Line Items]
Debt Instrument, Fee Percent		0.30%
Lending Arrangements Belgium, Netherlands, Singapore, and Mainland China Banks | Overdraft Facility
Line of Credit Facility [Line Items]
Line of credit facility, average outstanding amount		$ 5,841
Debt, weighted average interest rate			3.59%	3.59%	3.59%	3.59%	3.59%	3.59%
Lending Arrangements Netherlands and Belgium Banks | Overdraft Facility | EURIBOR
Line of Credit Facility [Line Items]
Interest rates on outstanding borrowing			2.75%	2.75%	2.75%	2.75%	2.75%	2.75%
Base Rate | Lloyds
Line of Credit Facility [Line Items]
Debt instrument, interest rate increase		1.75%
Hudson Information Technology (US) Business
Line of Credit Facility [Line Items]
Termination fee		$ 161
Payments to Secure Letter of Credit		$ 417
Singapore Subsidiary | Overdraft Facility | Singapore Prime Rate
Line of Credit Facility [Line Items]
Debt instrument, interest rate increase		1.75%
Singapore Subsidiary | Lending Arrangements Singapore Bank
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					SGD 200		$ 148
Lending arrangement expiration		1 year
Singapore Subsidiary | Lending Arrangements Singapore Bank | Overdraft Facility | Singapore Prime Rate
Line of Credit Facility [Line Items]
Interest rates on outstanding borrowing			6.00%	6.00%	6.00%	6.00%	6.00%	6.00%
NEW ZEALAND | National Australia Bank Limited and Bank of New Zealand [Member] | New Zealand Receivables Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				NZD 5,000			$ 3,455
LIne of Credit Facility, Notice Period		90 days
Additional borrowing availability							$ 1,785
Interest rates on outstanding borrowing			4.60%	4.60%	4.60%	4.60%	4.60%	4.60%
Debt Instrument, Fee Amount				NZD 1			$ 1
Long-term Line of Credit							(56)
Line of Credit Facility, Current Borrowing Capacity							1,841
Australia [Member] [Member] | National Australia Bank Limited and Bank of New Zealand [Member] | Australian Receivables Facility [Member] [Domain]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			AUD 25,000				19,143
Debt instrument, interest rate increase		1.50%
Additional borrowing availability							$ 9,297
Interest rates on outstanding borrowing			3.65%	3.65%	3.65%	3.65%	3.65%	3.65%
Debt Instrument, Fee Amount							$ 5
Line of Credit Facility, Current Borrowing Capacity							14,503
Line of Credit Facility, Fair Value of Amount Outstanding							(5,206)
Belgium Subsidiary | Lending Arrangements Belgium Bank
Line of Credit Facility [Line Items]
Terminated notice period		15 days
Belgium Subsidiary | Lending Arrangements Belgium Bank | Overdraft Facility
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 1,138	€ 1,000
LIne of Credit Facility, Notice Period		15 days

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CREDIT AGREEMENTS - Credit Facilities (Details) - 3 months ended Mar. 31, 2016 NZD in Thousands, AUD in Thousands, $ in Thousands	AUD Rate	NZD Rate	USD ($) Rate
Lloyds [Member]
Line of Credit Facility [Line Items]
Debt Turns in days	55
National Australia Bank Limited and Bank of New Zealand [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Covenants, Minimum Fixed Charges Coverage Ratio Required | Rate	150.00%	150.00%	150.00%
Line of Credit Facility, Covenants, Minimum Receivables Ratio | Rate	120.00%	120.00%	120.00%
Financial Guarantee Facility | National Australia Bank Limited and Bank of New Zealand [Member]
Line of Credit Facility [Line Items]
Financial guarantee capacity	AUD 3,000		$ 2,297
Less: outstanding financial guarantee requested			1,855
Additional availability for financial guarantee			$ 442
Interest rates on financial guarantee requested	1.80%	1.80%	1.80%
Australian Receivables Facility [Member] [Domain] | National Australia Bank Limited and Bank of New Zealand [Member]
Line of Credit Facility [Line Items]
Borrowing capacity	AUD 4,000		$ 3,063
NEW ZEALAND | New Zealand Receivables Agreement [Member] | National Australia Bank Limited and Bank of New Zealand [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Fee Amount		NZD 1	1
Long-term Line of Credit			(56)
Borrowing capacity		NZD 5,000	3,455
Additional borrowing availability			$ 1,785
Interest rates on outstanding borrowing	4.60%	4.60%	4.60%
Line of Credit Facility, Current Borrowing Capacity			$ 1,841
Australia [Member] [Member] | Australian Receivables Facility [Member] [Domain] | National Australia Bank Limited and Bank of New Zealand [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Fee Amount			5
Borrowing capacity	AUD 25,000		19,143
Less: outstanding borrowing			(5,206)
Additional borrowing availability			$ 9,297
Interest rates on outstanding borrowing	3.65%	3.65%	3.65%
Line of Credit Facility, Current Borrowing Capacity			$ 14,503

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ACCUMUATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	$ 10,827	$ 10,159
Pension plan obligations	135	133
Accumulated other comprehensive income (loss)	$ 10,962	$ 10,292

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STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			8 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Mar. 31, 2016	Jul. 30, 2015
Equity, Class of Treasury Stock [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.05
Dividends, Common Stock, Cash	$ 1,713
Authorized amount of stock repurchase program					$ 10,000
Stock Repurchased and Retired During Period, Shares	366,113			893,747
Payments for Repurchase of Common Stock	$ 985		$ 0	$ 2,372

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SEGMENT AND GEOGRAPHIC DATA Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) segments	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of Reportable Segments | segments	3
Revenue, from external customers	$ 101,227	$ 124,317
Inter-segment revenue	0	0
Total revenue	101,227	124,317
Gross margin, from external customers	41,262	47,904
Inter-segment gross margin	0	0
Gross margin	41,262	47,904
Business reorganization expenses (recovery) and impairment of long lived assets expense	637	1,343
EBITDA (loss)	(3,154)	(5,592)
Depreciation and amortization	688	1,111
Intercompany interest income (expense), net	0	0
Interest income (expense), net	(54)	(80)
Income (loss) from continuing operations before provision for income taxes	(3,896)	(6,783)
Accounts receivable, net	64,208	79,509	$ 62,420
Long-lived assets, net of accumulated depreciation and amortization	9,949	10,897
Total assets	121,838	121,171	$ 124,949
Hudson Asia Pacific
Segment Reporting Information [Line Items]
Total revenue	11,939	14,098
Long-lived assets, net of accumulated depreciation and amortization	3,284	2,671
Hudson Europe
Segment Reporting Information [Line Items]
Total revenue	12,123	21,859
Long-lived assets, net of accumulated depreciation and amortization	167	321
Operating Segments | Hudson Americas
Segment Reporting Information [Line Items]
Revenue, from external customers	3,837	10,978
Inter-segment revenue	0	0
Total revenue	3,837	10,978
Gross margin, from external customers	3,341	4,621
Inter-segment gross margin	(2)	(7)
Gross margin	3,339	4,614
Business reorganization expenses (recovery) and impairment of long lived assets expense	(16)	421
EBITDA (loss)	162	(1,620)
Depreciation and amortization	22	102
Intercompany interest income (expense), net	0	0
Interest income (expense), net	0	(33)
Income (loss) from continuing operations before provision for income taxes	140	(1,755)
Accounts receivable, net	3,162	6,934
Long-lived assets, net of accumulated depreciation and amortization	28	535
Total assets	7,243	9,423
Operating Segments | Hudson Asia Pacific
Segment Reporting Information [Line Items]
Revenue, from external customers	51,071	53,139
Inter-segment revenue	0	0
Total revenue	51,071	53,139
Gross margin, from external customers	18,771	20,876
Inter-segment gross margin	(60)	(31)
Gross margin	18,711	20,845
Business reorganization expenses (recovery) and impairment of long lived assets expense	197	8
EBITDA (loss)	(1,231)	804
Depreciation and amortization	404	671
Intercompany interest income (expense), net	0	0
Interest income (expense), net	(40)	(42)
Income (loss) from continuing operations before provision for income taxes	(1,675)	91
Accounts receivable, net	31,331	31,957
Long-lived assets, net of accumulated depreciation and amortization	7,475	7,300
Total assets	51,313	49,300
Operating Segments | Hudson Europe
Segment Reporting Information [Line Items]
Revenue, from external customers	46,319	60,200
Inter-segment revenue	62	14
Total revenue	46,381	60,214
Gross margin, from external customers	19,150	22,407
Inter-segment gross margin	62	37
Gross margin	19,212	22,444
Business reorganization expenses (recovery) and impairment of long lived assets expense	484	880
EBITDA (loss)	(330)	(2,150)
Depreciation and amortization	183	228
Intercompany interest income (expense), net	(57)	(130)
Interest income (expense), net	(14)	(5)
Income (loss) from continuing operations before provision for income taxes	(584)	(2,513)
Accounts receivable, net	29,715	40,618
Long-lived assets, net of accumulated depreciation and amortization	1,851	2,073
Total assets	54,047	58,811
Corporate
Segment Reporting Information [Line Items]
Revenue, from external customers	0	0
Inter-segment revenue	0	0
Total revenue	0	0
Gross margin, from external customers	0	0
Inter-segment gross margin	0	0
Gross margin	0	0
Business reorganization expenses (recovery) and impairment of long lived assets expense	(28)	34
EBITDA (loss)	(1,755)	(2,626)
Depreciation and amortization	79	110
Intercompany interest income (expense), net	57	134
Interest income (expense), net	0	0
Income (loss) from continuing operations before provision for income taxes	(1,777)	(2,602)
Accounts receivable, net	0	0
Long-lived assets, net of accumulated depreciation and amortization	595	989
Total assets	9,235	3,637
Elimination
Segment Reporting Information [Line Items]
Revenue, from external customers	0	0
Inter-segment revenue	(62)	(14)
Total revenue	(62)	(14)
Gross margin, from external customers	0	0
Inter-segment gross margin	0	1
Gross margin	0	1
Business reorganization expenses (recovery) and impairment of long lived assets expense	0	0
EBITDA (loss)	0	0
Depreciation and amortization	0	0
Intercompany interest income (expense), net	0	(4)
Interest income (expense), net	0	0
Income (loss) from continuing operations before provision for income taxes	0	(4)
Accounts receivable, net	0	0
Long-lived assets, net of accumulated depreciation and amortization	0	0
Total assets	$ 0	$ 0

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SEGMENT AND GEOGRAPHIC DATA Geographic Data Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue	$ 101,227	$ 124,317
Long-lived assets, net of accumulated depreciation and amortization	9,949	10,897
Net assets	56,037	50,452	$ 61,180
United Kingdon
Segment Reporting Information [Line Items]
Revenue	34,196	38,341
Long-lived assets, net of accumulated depreciation and amortization	1,684	1,752
Net assets	15,771	15,141
Australia
Segment Reporting Information [Line Items]
Revenue	39,132	39,041
Long-lived assets, net of accumulated depreciation and amortization	4,191	4,629
Net assets	10,046	11,633
United States
Segment Reporting Information [Line Items]
Revenue	3,634	10,826
Long-lived assets, net of accumulated depreciation and amortization	623	1,512
Net assets	8,632	3,742
Europe
Segment Reporting Information [Line Items]
Revenue	12,123	21,859
Long-lived assets, net of accumulated depreciation and amortization	167	321
Net assets	8,211	8,866
Asia Pacific
Segment Reporting Information [Line Items]
Revenue	11,939	14,098
Long-lived assets, net of accumulated depreciation and amortization	3,284	2,671
Net assets	13,435	11,088
Other Americas
Segment Reporting Information [Line Items]
Revenue	203	152
Long-lived assets, net of accumulated depreciation and amortization	0	12
Net assets	$ (58)	$ (18)

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SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended
	Apr. 27, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared		$ 0.05
Subsequent Event [Member]
Subsequent Event [Line Items]
Common Stock, Dividends, Per Share, Declared	$ 0.05