Indeed and Glassdoor face 1,300 layoffs as the parent company restructures and focuses on AI. Photo illustration by Sascha Steinbach/EPA
July 11 (UPI) — Glassdoor and Indeed will cut about 1,300 jobs as their sites intertwine and the parent company pushes for more use of artificial intelligence.
Recruit Holdings owns the two sites. The Japanese company said more Glassdoor operations will fold into Indeed, and the companies will use more AI.
The company said in a statement it is focusing on “simplifying hiring by building a better job seeker and employer experience using AI.” It cited its internal figure that AI helps people find a job every 2.2 seconds, TechCrunch reported. “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers,” CEO, Hisayuki “Deko” Idekoba wrote in an internal memo.
Most job cuts would be in the United States in both companies’ research and development, tech, human resources and sustainability departments. But the cuts will affect all functions and countries, the memo said. Six percent of Recruit’s HR technology division will suffer cuts.
Glassdoor CEO Christian Sutherland-Wong is resigning.
In May, Idekoba said at a JPMorgan Chase technology conference, CBS News reported: “[W]hen we think about HR industry, which is $300 billion-plus industry, but it includes like 60% or 65% of human labor manual cost. 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.”
Idekoba said that about one-third of the company’s new programming code is written by AI: “It’s going to be 50% pretty soon.”
Recruit Holdings bought Indeed in 2012 and Glassdoor in 2018, securing two popular platforms that jobseekers use.
It’s not clear exactly how the company will use AI to replace workers.