Indeed and Glassdoor to Slash 1,300 Jobs Amid Parent Company's AI Push

Indeed and Glassdoor are laying off 1,300 employees as their parent company, Recruit Holdings, restructures for AI. The cuts will mainly impact US roles in research, people operations, and sustainability. Glassdoor's CEO and Indeed's Chief People Officer will depart amid the restructuring. The layoffs follow previous job cuts by Indeed in 2022 and 2023.

Recruit Holdings, the Japanese parent company of job search platforms Indeed and Glassdoor, has announced plans to reduce its workforce by approximately 1,300 employees across both sites. The cuts, representing around 6% of the HR technology segment workforce, are primarily concentrated in the U.S. and affect various teams, including research and development, growth, and people and sustainability [1].

The restructuring is part of a broader shift in focus toward artificial intelligence (AI). Recruit CEO Hisayuki "Deko" Idekoba stated, "AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers" [1]. This move aligns with recent trends among U.S. tech companies, such as Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT), which have also announced job cuts to prioritize AI investments and navigate economic challenges [1].

Notably, the restructuring will also see the integration of Glassdoor operations into Indeed. As a result, Christian Sutherland-Wong, CEO of Glassdoor, will leave the company effective October 1. Additionally, LaFawn Davis, chief people and sustainability officer of Indeed, will step down effective September 1 and be succeeded by Ayano Senaha, chief operating officer of Recruit [1].

This is not the first time Indeed has announced job cuts. In 2024, the company announced plans to eliminate 1,000 positions, following a previous announcement in 2023 where it said it would cut about 2,200 jobs, representing 15% of its staff [1].

The layoffs come as Recruit Holdings seeks to optimize its operations and align with the evolving job market trends driven by AI. The company currently employs 20,000 people in the HR technology business unit.

References:
[1] https://www.investing.com/news/stock-market-news/indeed-glassdoor-to-cut-1300-jobs-amid-ai-integration-memo-shows-4130839
[2] https://www.marketscreener.com/quote/stock/SOLUNA-HOLDINGS-INC-3522074/news/Soluna-Holdings-Inc-Fills-Rack-Capacity-At-Dorothy-2-with-30-MW-Expansion-with-Top-Tier-Bitcoin-Mi-50457457/