Job search platform Indeed lays off 1,000 employees, CEO says 'I am responsible for this'

Global job search platform Indeed is laying off approximately 1,000 employees, accounting for 8% of its workforce. 

The reductions, while affecting many groups and regions, are primarily concentrated in the US, specifically targeting the R&D and some Go-to-Market teams.

CEO Chris Hyams addresses the decision

"This was a difficult decision, but it is necessary to simplify our organization and make it easier to make decisions," said CEO Chris Hyams. 

He emphasized the comprehensive approach taken in making these difficult choices.

"We worked closely with the HR, Legal, and DEIB+ teams to ensure objectivity and equity in the decision-making process. The final selections have had no measurably disproportionate impact on women and under-represented genders or the under-represented minority population in the US," explained Hyams.

Enhanced separation package for affected employees

In light of the layoffs, Indeed has increased the separation package for the impacted employees. 

This package includes severance, healthcare payment where applicable, and outplacement services, among others. Hyams acknowledged his role and the responsibilities of the senior leadership team during this challenging period.

"I am responsible for how we got here, and the entire SLT is responsible for making the difficult decisions necessary to help set us up for the future. We know these decisions will have a significant impact on people’s lives," he said.

Reasons behind the layoffs

Explaining the necessity of the layoffs, Hyams recounted the challenges faced by the company in the previous year. "Last year, we were facing a global slowdown in hiring, which led to multiple consecutive quarters of revenue loss. We reduced our headcount, instituted multiple cost-saving measures, and instilled investment discipline across the company. These measures worked, and we are now operating with stable profitability."

However, the global economic situation, while improved, still poses challenges for sustainable growth.

"While the global economy has improved in several areas over the past year, we are not yet set up for sustainable growth. Despite our efforts so far, our organization is still too complex, we still have significant duplication of effort and too many organizational layers that slow down decision-making. We have been working to simplify every aspect of our business, but without meaningful change, we can’t get where we need to go," Hyams elaborated.

Future organizational restructuring

Indeed also plans a major overhaul of its Research and Development (R&D) department to better align with its marketplace strategy. This includes reducing management layers to streamline operations and improve decision-making processes.

Furthermore, the company is realigning some of its Go-to-Market teams to enhance efficiency and effectiveness in how these teams operate. Notably, It will be cutting a large number of Sales and Customer Service roles at its Foster City location in California.

"Across the business, we are making additional changes to simplify decision-making and create clarity," Hyams disclosed.