- Indeed is the latest company to announce layoffs, with an estimated 2 200 employees being informed that they are being laid off.
- The number represents roughly 15 percent of the company’s workforce.
- Indeed says the decision was taken due to a downward trend in employment across a myriad industries.
The tech winter continues, as big companies push forward with mass layoffs. The latest to announce layoffs is job finding/posting platform Indeed, which this week informed its employees that a sizeable chunk of its workforce were being let go.
To that end, in a blog post explaining the situation, CEO Chris Hyams, said roughly 2 200 employees were set to be laid off. While this is nowhere near the numbers we have seen for companies like Amazon, Microsoft, Google, and Meta, the percentage of employees being laid off is sizeable.
The 2 200 represents 15 percent of Indeed’s workforce, the company confirmed.
“The cuts come from nearly every team, function, level and region at Indeed and Indeed Flex. The specific decisions on who and where to cut were extremely difficult, but they were made with great care. We focused on preparing the organization for the future, aligning with our strategy and priorities, and reducing duplication of effort and inefficiency. We worked closely with the HR, Legal, and DEIB+ teams to ensure objectivity and equity in these decisions,” noted Hyams.
The reason behind the layoffs are also of note here, with Indeed citing an industry-wide downturn as regards the job market. Much like we have seen during the tech winter, the boom in employment during post-pandemic era has dropped significantly and looks like it will continue to be the case.
As we shared at the last Quarterly Update meeting, it is clear the job market will continue to cool after the recent post-COVID boom. It is becoming increasingly likely that HR Tech revenue will decline in FY2023 and potentially again in FY2024. Last quarter, US total job openings were down 3.5% year over year, while sponsored job volumes were down 33%. In the US, we are expecting job openings will likely decrease to pre-pandemic levels of about 7.5 million, or even lower over the next two to three years,” highlighted Hyams.
“With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead,” he concluded.
As such prospects across the board look to be increasingly dire.