At a company that helps people find jobs, 2.200 employees will have to embark on their own job search. The CEO Indeed, Chris Hyams, has announced today in a meeting with all employees that he will lay off 15% of them.
In a entry From his blog, Hyams explained that the job market is expected to continue to cool. Indeed makes money by allowing employers to sponsor job postings, which makes it possible to show the job offer to a larger number of applicants. But Hyams said that in the last quarter, the volume of sponsored jobs was down 33% year-on-year, and total job offers were down 3,5%.
“With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead,” Hyams wrote. “We have lasted longer than many other companies, but the revenue trends are undeniable. So I have decided to act now.”
The CEO himself will suffer a 25% cut in his base salary.
An hour after the announcement, employees received an email informing them of their employment status: “Your position has been affected” or “Your position has not been affected.” Employees in the United Kingdom, Ireland, the Netherlands and Japan may remain in limbo, due to local regulations.
Indeed offers at least 16 weeks of base salary, compensation for accrued PTO, a cash payment for RSUs that have not vested, and access to mental health and career placement services. US employees are entitled to four months of health insurance through COBRA. They can also keep their work laptop, which will be immediately disconnected from Indeed business systems; but Slack, email and access to Workday won't be affected immediately, so employees can say goodbye to their colleagues and remove personal stuff from their laptops, which will be reset remotely.
Hyams wrote that these cuts are affecting almost all teams, across all roles, tiers, and regions.. The company consulted with the HR, legal and DEIB+ teams to ensure that the layoffs would not have a disproportionate impact on underrepresented minorities in the US.
Layoffs continue to wreak havoc in the tech sector. Amazon has carried out its second round of layoffs in a few months, affecting 9.000 more employees, adding to the layoffs that have already affected 18.000 people. Last week, Meta also announced a second round of mass layoffs: The social media giant plans to cut another 10.000 jobs, despite cutting 11.000 features in November.
