Indeed and Glassdoor are reportedly cutting around 1,300 jobs worldwide. Notably, Japan-based Recruit Holdings owns these two leading job-related services. The layoffs will primarily impact teams in research and development, human resources, and sustainability, reports Bloomberg (citing an internal memo). The job cuts are said to mainly affect employees based in the United States.
According to the report, Recruit Holdings CEO Hisayuki Idekoba said (in a memo to staff) the decision reflects a broader need to adapt to how AI is transforming the job search and hiring domain. Although the memo did not give a specific reason for the layoffs, CEO Idekoba noted that AI is changing the world, and the company needs to adapt by improving its products and delivering more value quickly.
The timing of the move is significant, as Recruit Holdings is said to be working aggressively to integrate AI more deeply into its HR technology offerings. The latest job cuts are not being directly described as a cost-cutting exercise. Instead, the company states that the restructuring is intended to reorganise teams to better support its artificial intelligence (AI) goals, like developing more advanced tools.
As part of this new plan, Indeed and Glassdoor will also begin sharing more internal operations and technology moving forward. In the meantime, Recruit Holdings has reportedly ensured that employees affected by the layoffs will receive severance and support.
This is not the first time Indeed has undergone major layoffs. In May 2024, the company cut nearly 1,000 jobs (around 8% of its global workforce). The affected roles were mainly in research and development, as well as go-to-market teams. At that time, then-CEO Chris Hyams said the decision was due to a slowdown in global hiring. Even this happened just over a year after a larger round of layoffs in March 2023, when Indeed laid off about 2,200 employees (~ 15% of its staff) due to a significant decline in job postings. The latest move comes at a time when the company’s competitors, like LinkedIn and Monster, are also advancing AI-driven toolkits.
Importantly, Recruit Holdings is not the only company reducing its workforce as part of a shift toward artificial intelligence. Recently, cybersecurity giant CrowdStrike also announced plans to cut around 5% of its global workforce (around 500 employees) as part of a broader strategy to improve operational efficiency and make better use of advancements in AI. Even Amazon CEO Andy Jassy recently stated that AI would gradually replace some corporate roles to improve efficiency. However, the statement drew backlash from employees concerned about potential job losses. This comes as reports emerged earlier this year suggesting that the company plans to reduce its global management workforce by around 14,000 positions by early 2025.
