Reports job market poised to continue cooling
Online jobs advertising platform Indeed announced today that it is laying off approximately 2,200 people, or roughly 15% of its global workforce. The layoffs take effect March 31.
Indeed CEO Chris Hyams discussed the layoffs in a message.
“I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs,” Hyams wrote. “This is a decision I truly hoped I’d never have to make.”
The layoff decision comes as the job market appears poised to continue cooling.
Last quarter, US total job openings were down 3.5% year over year while sponsored job volumes on the site were down 33%, Hyams wrote. Indeed expects that US job openings will likely decrease to pre-pandemic levels of about 7.5 million or even lower over the next two to three years.
“With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead,” his message states. “We need clarity, focus, and urgency to ensure that all of our energy is directed towards investing in our future. We have held out longer than many other companies, but the revenue trends are undeniable.”
Hyams noted that he will be taking a 25% cut in base pay. In addition, 75% of his total compensation is directly tied to Indeed revenue growth and is at risk given current trends.
The cuts come from nearly every team, function, level and region.
“The specific decisions on who and where to cut were extremely difficult, but they were made with great care,” Hyams wrote. “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 [diversity, equity, inclusion and belonging] teams to ensure objectivity and equity in these decisions.”
Indeed also announced a severance package that includes 16 weeks of base salary, or two weeks for every year of services, and ongoing career placement services for the next six months.