Indeed and Glassdoor to lay off 1,300 workers as AI shakes up job search business
Recruit Holdings, the parent company of job search and employee review firms Indeed and Glassdoor, is making significant changes in response to the growing influence of artificial intelligence (AI). CEO Hisayuki “Deko” Idekoba announced that approximately 1,300 jobs will be cut, representing about 6% of Recruit Holdings’ workforce.
The layoffs will primarily affect the research and development, as well as “people & sustainability,” teams in the U.S., with other areas and regions also facing impact. The company’s focus on utilizing AI to revolutionize the job search process and recruitment efforts is the driving force behind these changes. As part of this strategy, Glassdoor operations will be integrated into Indeed, resulting in Glassdoor CEO Christian Sutherland-Wong stepping down.
Idekoba emphasized the potential of AI to simplify hiring processes and reduce manual labor costs in the HR industry, which is valued at over $300 billion. He noted that a significant portion of the company’s new programming code is already generated by AI and expects this trend to continue, with AI potentially contributing up to 50% of the code in the future.
While corporate leaders like Idekoba advocate for AI’s capabilities in streamlining operations, concerns about potential job displacement have been raised by experts. Ford CEO Jim Farley, for instance, predicted that AI could replace half of all white-collar workers in the U.S.
As the workforce adapts to the advancements in AI technology, companies like Recruit Holdings are navigating the balance between innovation and workforce restructuring. The evolving landscape of the job market underscores the importance of staying abreast of technological trends to remain competitive in the industry.
Megan Cerullo, a reporter for CBS MoneyWatch, covers a range of topics including small business, workplace dynamics, healthcare, consumer spending, and personal finance. Her insights and analysis provide valuable perspectives on the changing dynamics of the modern workplace and economic landscape.
