Job Search Portal Indeed Sacks 2,200 Employees, CEO Says 'Organisation Too Big' For What Lies Ahead

Addressing the irony of the situation, CEO said, "Leading a company whose mission is to help people get jobs, every single day I think about how important a job is in a person’s life."

Leading job search portal Indeed on Wednesday announced to lay off around 2,200 employees or 15 per cent of its workforce. In a blog post Indeed CEO Chris Hyams said that he is "heartbroken" after making "the difficult decision" to reduce the headcount through layoffs.

The blog post by CEO Hyams read, "We anticipate we will be letting approximately 2,200 people go. This is roughly 15 per cent of our team. The cuts come from nearly every team, function, level, and region at Indeed and Indeed Flex."

"I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs. This is a decision I truly hoped I’d never have to make," Hyams added. 

Addressing the irony of the situation, Hyams wrote, "Leading a company whose mission is to help people get jobs, every single day I think about how important a job is in a person’s life. Losing a job is extraordinarily hard, financially and emotionally. For those who will be leaving, we are working to bring as much support as possible to each of you."

Giving the reason behind the layoffs, the company said, "Last quarter, US total job openings were down 3.5 per cent year over year, while sponsored job volumes were down 33 per cent. 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."

"With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead," the statement added. 

Also announcing a 25 per cent pay cut in his bas salary, Hymes noted, "I take sole accountability for where we are today. I am deeply and profoundly sorry. I will be taking a 25 per cent cut in base pay. Additionally, more than 75 per cent of my total compensation is directly tied to Indeed revenue growth, and is at risk given current trends. We will be instituting additional cost saving measures moving forward, which I will outline tomorrow."

The company will share information directly with everyone impacted and everyone outside of the UK, Ireland, the Netherlands, and Japan will receive an email informing them of their status.

"In the UK, Ireland, the Netherlands and Japan, unfortunately, local regulations will mean a longer wait. We will communicate with all of you today to outline the specifics in your region," said the CEO.

Under the severance agreement, employees will receive 16 weeks of base salary, or two weeks for every year of service, whichever is greater.

"A cash payout equivalent to your RSUs scheduled to vest on May 1. For employees whose initial grant date was August 1, 2022 or later, you will receive a partial payout for RSUs that vest on May 1 with the standard one year vesting cliff waived," Hyams informed. The payout will be calculated at the closing stock price on February 1.

In the last few months, leading US tech firms have announced to let go of thousands of workers. Meta, Google, Amazon, Twitter, and many others have fired employees to navigate the tough economic environment and cut costs.