Indeed, the job portal is laying off around 1,000 people, or 8% of its workforce. The cutbacks affect many areas and organizations, but unlike last year, they are not uniform. The layoffs occur mainly in the United States and are primarily aimed at R&D and some go-to-market teams.
In a memo, CEO Chris Hyams stated that the company is profitable but unprepared to prepare for long-term growth. He noted that the reductions are more targeted than the 2,200-worker reduction done last year. In this article, let’s explore layoffs at Indeed in more detail.
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What happened in Indeed?
Indeed, Inc. is a global job posting website based in the United States. The website collects job listings from thousands of websites and makes revenue by selling premium job posting and resume tools to employers and companies looking to hire.
In 2023, Indeed, Inc., the world’s largest job board, laid off 2,200 employees. This accounted for approximately 15% of its workforce. Its subsidiary site, Glassdoor, laid off 140 employees in 2023. The layoff is Indeed’s first big one, in addition to the genuine and tragic impact on these former workers. Previously, it had grown like a weed in practically every place it was found. Workers received emails informing them of their status. Those who lost their jobs were met with the subject line, “Your Position Has Been Impacted.”
Following that, Indeed CEO Chris Hymans gave an obvious explanation for the layoffs:
“Last quarter, U.S. overall job opportunities declined 3.5% yearly. Also, the sponsored job volume fell by 33%. Our organization is too large for the challenges ahead with prospective job vacancies at or below pre-pandemic levels.” In other words, there are too many people and little revenue.
Indeed, it may be overhired due to revenue growth in 2021 and 2022. Overhiring, particularly in the tech industry, caused a significant portion of Indeed’s growth in 2022.
2024 Layoffs at Indeed
Indeed, it said it will lay off roughly 1,000 employees, or about 8% of its workforce. The company is taking this action to simplify its operations.
In a memo made public on May 13, 2024, CEO Chris Hyams accepted responsibility for “how we got here.” He noted that the company is still being prepared for growth after last year’s worldwide hiring slowdown, which resulted in repeated quarters of dropping sales.
The decision also intends to reduce “too many organizational layers” within the business. This mirrors Mark Zuckerberg’s actions last year when the CEO stated that he wanted to “flatten” Meta’s organizational chart.
“We have been trying to simplify every aspect of our business. But we can’t get where we need to go without significant alterations,” Hyams stated.
Hyams said the company’s leadership worked with its H.R., legal, diversity, equity, and inclusion departments “to ensure objectivity and equity in the decision-making processes.”
“The final picks have had no unequal effect on women, underrepresented genders, or the underrepresented minority population in the U.S.,” Hyams stated.
He added: “Within the hour, workers outside of Ireland, the United Kingdom, and Australia will find out whether they have been affected by this decision. If you are affected, your email will contain a link to the specifics of your separation package, which will differ by location. Most employees’ compensation amounts have increased in the last year. They include severance, healthcare benefits (where applicable), and outplacement assistance, among other things.”
Reasons for the layoff
Reporters asked a spokesperson how the layoffs might affect Indeed’s headcount. He stated the company had no further information beyond Hyams’ letter. It was indeed announced last summer that it employed 2,800 individuals in Austin. It is a decrease of approximately 100 employees from the previous year. The company declined to release an updated head figure on May 13, 2024.
“I am sad to convey the news that we have made the difficult choice to reduce our staff size through a layoff,” Hyams stated in the letter. “A year ago, our cut was driven by cost savings. Unlike that, we are taking this action because we need to simplify our organization by making it easier and faster for us to make decisions. It will also enable us to expand revenue and hire more effectively.”
“As hard as these changes are, our new structure will help us to simplify and work efficiently as one team. Thus, we will reignite revenue growth. We aim to drive towards our 2030 goal of helping 100 million individuals get jobs.”
She was told that in March 2023, it would lose 2,200 jobs or around 15% of its global workforce. The company, which generates revenue through sponsored job posts, blamed slowing the overall job market and demand for its technologies.
For the most recent round of layoffs, Hyams stated, “While the layoffs touch many groups and regions, they are not across the board like last year. Instead, they are mainly concentrated in the
The U.S. focuses more on R&D (research and development) and some go-to-market teams.”
He stated that the business would “significantly restructure” its R&D team, removing layers of management and implementing additional efforts to “simplify decision-making and create clarity.”
Indeed, executives have organized a worldwide town hall meeting for staff on May 14, 2024. Hyams stated that there will be more details on the general organizational structure. This will be followed by more meetings with corporate leaders to respond to employees’ questions.
Conclusion
The layoffs occur when Indeed faces growing competition from rival job boards like LinkedIn and Glassdoor. The company is also under pressure from investors to increase its profitability.
“We are sure that these modifications will make Indeed a stronger company in the long term,” Hyams stated.