- Indeed CEO Chris Hyams took “sole accountability” for the layoffs and said he would take a 25% pay cut
- Glassdoor CEO Christian Sutherland-Wong said it’s “just the beginning” of a wider economic downturn
- More than 152,000 tech workers have lost their jobs as of Wednesday
Job listing companies Indeed and Glassdoor are both laying off 15% of their workforces, as last year’s layoffs spree in the tech industry ignited a ripple effect that many companies have blamed on the economic downturn. This may interest you : Point Spread Changes Since Chiefs vs. Eagles Game Was Set.
About 2,200 Indeed employees affected by the job cuts received an email within an hour after CEO Chris Hyams made the announcement in an all-hands meeting Wednesday, according to TechCrunch.
Affected workers reportedly got emails with the subject line “Your Position Has Been Impacted,” while retained employees were sent emails with the subject line “Your Position Has Not Been Impacted.”
The workforce reductions at Indeed will affect “nearly every team, function, level and region” at Indeed and its temporary work app Indeed Flex.
Hyams explained in a blog post that the company closely consulted with human resources, its legal team and its DEIB+ group, which is under its Environmental, Social and Governance Unit to ensure that the cuts “were made with great care.”
“The final selections have had no measurably disproportionate impact on women and under-represented genders or the under-represented minority population in the U.S.,” Hyams explained.
Indeed has come up with a severance package that includes 16 weeks of base pay, four months of Consolidated Omnibus Budget Reconciliation Act (COBRA) for U.S. employees, career placement services for six months and mental health services that will last for a year.
Hyams went on to take “sole accountability” for the mass layoffs. He said he would take a 25% cut in his base pay, adding that more than 75% of his total salary “is directly tied to Indeed revenue growth, and is at risk given current trends.”
News of Indeed’s mass layoffs came about three weeks after the company partnered with hiring and HR platform Hireology.
“Today’s announcement is the first of several upcoming integration enhancements between Hireology and Indeed,” Hireology said in a press release late last month.
Over at San Francisco-based Glassdoor, about 140 employees will be let go, as announced by CEO Christian Sutherland-Wong Wednesday.
“It has become increasingly clear that this is just the beginning of a broader economic slowdown,” Sutherland-Wong said in a message to employees Wednesday that was shared on the company website.
Sutherland-Wong explained that job postings declined by 33% year-on-year, specifically on U.S.-sponsored jobs. The employer rating company also saw declines in retention rates for its Employer Branding customers.
Glassdoor’s severance package has similar provisions to that of Indeed, as it will also provide affected employees with health coverage for four months and career support. However, the company will include access to Modern Health for affected employees and their dependents at no cost through the end of the year. Moreover, affected workers can choose to keep their Glassdoor-provided laptops to help with job hunting.
Sutherland-Wong noted that individual severance packages specific to each employee and their location will be delivered, and a People team support personnel will be available for queries or clarifications.
Just last month, Glassdoor partnered with diversity staffing organization Black Progress Matters (BMP) as part of its efforts to diversify its company leadership.
“A really important priority for us is getting greater diversity within our leadership team and how we operate as an employer that embraces diversity, equity, inclusion and belonging,” Sutherland-Wong said at the time.
Indeed and Glassdoor are both owned by Recruit Holdings Co., Ltd.
The widespread tech industry layoffs that started last year have seen a significant acceleration in the first three months of 2023.
Last year, more than 97,000 workers in the tech industry lost their jobs. This year, more than 150,000 workers have been affected by layoffs in the first quarter.
As of Wednesday, 515 tech companies have announced layoffs since January. A collective of 152,858 employees has so far been affected by the job cuts, as per layoffs tracker layoffs.fyi.
Other significant layoff announcements in March include Biotech firm Amgen Inc., which cut 450 jobs last week; data-driven marketing tools provider Klaviyo, which recently received $100 million funding and digital cycling brand Zwift, which raised a total of $620 million in funding earlier this year.