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Job listing platform, Indeed, to cut 2K+ jobs

Job listing platform, Indeed, to cut 2K+ jobs

Written by Sanjay Kumar

On Wednesday (March 22), US-based job search platform Indeed announced that it will cut approximately 2,200 jobs, which is 15% of its workforce. This move is in line with many other companies that are rationalizing their labor force following a pandemic-fueled hiring boom.

Indeed

Website

  • Owner: Indeed
  • Date launched: November 2004
  • CEO: Chris Hyams
  • Employees: 14,600+
  • Founded: November 2004; 18 years ago
  • Founder(s): Paul Forster; Rony Kahan
  • Headquarters: Austin, Texas, U.S. Stamford, Connecticut, U.S

In a blog post, Indeed CEO Chris Hyams explained that the job market is expected to continue to cool down. The company generates its revenue by allowing companies to sponsor job listings, which display the listing to more job seekers. However, Hyams revealed that, as of the last quarter, sponsored job volumes were down 33% year over year, and total job openings were down 3.5%.

Hyams elaborated, “With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead…The revenue trends are undeniable. So, I have decided to act now.” Hyams himself will take a 25% cut in base pay.

Within an hour of the announcement, employees were notified about their job status through email subject lines that read either “Your Position Has Been Impacted” or “Your Position Has Not Been Impacted.” However, employees in the U.K., Ireland, the Netherlands, and Japan may still be uncertain due to local regulations.

Indeed is offering a minimum of 16 weeks of base salary pay, compensation for accrued PTO, a cash payout for RSUs that haven’t vested, and access to career placement and mental health services. U.S. employees are eligible for four months of health insurance through COBRA. They can also keep their work laptops, which will be immediately disconnected from Indeed business systems. However, Slack, email, and Workday access won’t be immediately affected, allowing people to say goodbye to colleagues and remove personal materials from their laptops, which will be reset remotely.

Hyams noted that these layoffs will impact nearly every team at every function, level, and region. The company worked with HR, legal, and DEIB+ teams to ensure that the layoffs did not disproportionately affect underrepresented minorities in the U.S.

Layoffs continue to ripple through the tech industry. Recently, Amazon conducted its second significant round of layoffs in just a few months, affecting an additional 9,000 employees on top of the 18,000 already impacted. Additionally, Meta announced its second round of massive layoffs, planning to cut another 10,000 jobs despite eliminating 11,000 roles in November.

FAQ

01. What is Indeed?

Indeed is a job search platform based in the United States. It was launched in November 2004 and is owned by Indeed. The platform generates revenue by allowing companies to sponsor job listings, which display the listing to more job seekers.

02. Why is Indeed cutting jobs?

Indeed is cutting jobs because the job market is expected to continue to cool down, and the company’s revenue has been impacted. The company announced that sponsored job volumes were down 33% year over year, and total job openings were down 3.5%. Indeed’s CEO, Chris Hyams, stated that the organization is simply too big for what lies ahead.

03. How many jobs will be cut at Indeed?

Indeed will cut approximately 2,200 jobs, which is 15% of its workforce.

04. How were Indeed employees notified about their job status?

Employees were notified about their job status through email subject lines that read either “Your Position Has Been Impacted” or “Your Position Has Not Been Impacted.”

05. What benefits will be affected Indeed employees receive?

Indeed is offering a minimum of 16 weeks of base salary pay, compensation for accrued PTO, a cash payout for RSUs that haven’t vested, and access to career placement and mental health services. U.S. employees are eligible for four months of health insurance through COBRA. They can also keep their work laptops, which will be immediately disconnected from Indeed business systems.

06. How exactly will layoffs affect operations?

According to the CEO, these layoffs will impact nearly every team at every function, level, and region. However, the company worked with HR, legal, and DEIB+ teams to ensure that the layoffs did not disproportionately affect underrepresented minorities in the U.S.

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