Job search company Indeed and employer review site Glassdoor are both facing staffing cuts – the latest victims of a shift towards the use of AI optimization.
Hisayuki Idekoba, CEO of Japanese group Recruit Holdings Co – parent organization of both companies – announced in a memo Thursday that 1,300 positions would be axed in total.
"AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employees," Idekoba's email read, reports Bloomberg . "Delivering on this ambition requires us to move faster, try new things, and fix what's broken."
The cuts are part of a wider trend of workforce slimming due to advances in AI. CEOs from major companies in multiple sectors, including JP Morgan Chase, Amazon and Ford, have all voiced concerns about the impacts such technological developments will have on their businesses.
“Artificial intelligence is going to replace literally half of all white-collar workers in the U.S.,” Ford boss Jim Farley said in an interview at the Aspen Ideas Festival last week. “AI will leave a lot of white-collar people behind.”
The Indeed and Glassdoor cuts are expected to mostly affect those based in the U.S., around 6 percent of those working in areas of research and development, and people and sustainability, Idekoba reportedly told employees.
Employee review functions from Glassdoor will also be integrated into Indeed in order to streamline the hiring process for both jobseekers and employers, Bloomberg reported.
The Independent has contacted Recruit Holdings Co. for comment.
Last spring, the company announced roughly 1,000 job cuts in the U.S., also with a focus on its research and development sections, as well as some teams that bring products to customers, former CEO Chris Hyams said at the time.
Hyams resigned from his role last month, writing in a blog post that he would be “devoting myself to a few urgent issues ensuring that all technology—not just Indeed—is built with humanity at its core.”
Idekoba returned to replace him as CEO, having already held the position between 2013 and 2019.
In a statement announcing his return, Idekoba heralded a “once-in-a-generation moment when technology can really change lives” and said that the use of AI would make the slow and difficult task of hiring “simpler and more personal—for both job seekers and employers.”
In March 2023, Recruit Holdings Co. announced 2,200 cuts which focused on “preparing the organization for the future, aligning with our strategy and priorities, and reducing duplication of effort and inefficiency," according to a letter sent to employees, also reported by Bloomberg.
