Hiring platform Indeed is laying off 2,200 employees, or roughly 15% of its total workforce.
CEO Chris Hyams shared the news in a company memo Wednesday, citing a drop in postings and cooling job market.
“With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead,” Hyams said, noting that job openings were down 3.5% year over year last quarter. “We need clarity, focus, and urgency to ensure that all of our energy is directed towards investing in our future. We have held out longer than many other companies, but the revenue trends are undeniable. So I have decided to act now.”
Cuts will affect teams across the company.
“This is a decision I truly hoped I’d never have to make,” Hyams said.
Indeed will provide cut employees with a severance package including 16 weeks of base salary or two weeks for every year of service, four months of COBRA (in the United States only), accrued PTO, access to ongoing career placement services for six months and access to ongoing mental health services for 12 months.
Indeed was acquired by Japan’s Recruit Holdings in 2012. Its parent company also owns job reviews site Glassdoor. The recruiting platform is not the first to cut jobs this year. Microsoft’s LinkedIn laid off recruiting department staff in February 2023.
Recruit Holdings CEO Hisayuki Idekoba reported a 33% decline in sponsored jobs on Indeed during the last quarter of 2022.
“With announcements of layoffs and reports that the economy is likely to worsen, we’re seeing a decline in employers’ willingness to spend to hire in many industries despite the labor shortage, as they become increasingly cautious due to a potential recession in the U.S.,” he said on an earnings call last month, according to The Information.