Job search platforms Indeed and Glassdoor are cutting approximately 1,300 employees as part of a major restructuring by their parent company, Recruit Holdings of Japan. The layoffs represent about 6% of the workforce in Recruit’s HR technology segment and reflect the company’s strategic pivot toward artificial intelligence and operational consolidation.
What you should know: The restructuring involves significant leadership changes and organizational consolidation as Recruit doubles down on AI-driven automation.
- Glassdoor will be folded into Indeed’s operations as part of the overhaul.
- Glassdoor CEO Christian Sutherland-Wong will step down on October 1.
- LaFawn Davis, chief people and sustainability officer at Indeed, is also leaving the company.
- Most of the affected employees are based in the United States, with cuts spanning research and development, human resources, and sustainability departments.
The big picture: Recruit Holdings sees massive opportunity to automate manual processes in the $300 billion HR industry through AI integration.
- About one-third of the company’s new programming code is currently generated by AI, with expectations to reach 50%.
- The company aims to streamline hiring processes and enhance user experiences through greater AI utilization.
- Recruit joins a growing list of tech firms—including Meta, TikTok, and Intel—scaling back workforces while ramping up generative AI investment.
What they’re saying: Company leadership frames the restructuring as necessary adaptation to AI’s transformative impact on the industry.
- “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers,” said Recruit CEO Hisayuki “Deko” Idekoba in a memo to employees.
- “(When) we think about HR industry, which is $300 billion-plus industry, but it includes like 60% or 65% of human labor manual cost,” Idekoba said at a JPMorgan Chase technology conference in May.
- “It’s very difficult to find that big industry with such a high percentage of human labor manual cost. And so what we believe is, basically, how can we simplify hiring with using AI and technology and data to reduce manual work. That’s what we are focusing on.”
Financial impact: Recruit said the job reductions were already accounted for in its latest financial forecast, suggesting the restructuring was part of a planned strategic transformation rather than a reactive cost-cutting measure.
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