Indeed, one of the leading employment websites, has announced a significant reduction in its workforce, with about 1,000 employees set to be laid off.
The announcement was made by CEO Chris Hyams in a letter dated May 13 to employees.
“I am sad to share the news that we have made the difficult decision to reduce our headcount through a layoff. Unlike last year, where our reduction was driven by cost savings, we are taking this action because we need to simplify our organization to make it easier and faster for us to make decisions, and help us to more effectively grow revenue and hires,” he said.
About 8% of workforce affected
The layoffs, representing about 8% of the company’s workforce, will primarily affect employees in the United States, with a focus on the Research & Development (R&D) and certain Go-to-Market teams. Hyams noted that the decision-making process involved close collaboration with the HR, Legal, and Diversity, Equity, Inclusion, and Belonging (DEIB+) teams to ensure objectivity and equity.
“The final selections have had no measurably disproportionate impact on women and under-represented genders or the under-represented minority population in the US,” said Hyams.
Those impacted received details of their separation packages, which vary by region and have been increased for most employees compared to last year. The packages include severance, healthcare payments where applicable, and outplacement services.
Hiring slowdown takes part of blame
Hyams took responsibility for the circumstances leading to the layoffs, citing a global hiring slowdown last year that resulted in consecutive quarters of revenue loss. Despite implementing cost-saving measures and achieving stable profitability, the company is still not set up for sustainable growth, he said.
“Our organization is still too complex,” Hyams explained. “We still have significant duplication of effort and too many organizational layers that slow down decision-making.”
To address these issues, Indeed is restructuring its R&D team to align with its marketplace strategy and reducing layers of management. The company is also realigning some Go-to-Market teams and eliminating most Sales and Customer Service roles in Foster City, Calif.
Hyams acknowledged the impact of these decisions on employees and announced a global town hall for the following day to discuss the new organizational structure.
“For those who are staying, I know you will need time to absorb this news. Tomorrow we will have a global town hall where I will share more about the overall org structure. This will be followed by org-specific town halls led by SLT, with opportunities to get answers to your questions. On Wednesday, we will share the updated organization chart for everyone to see,” he said.
Despite the challenges, Hyams expressed confidence that the new structure will help Indeed work more effectively as a team and achieve its goal of helping 100 million people get jobs by 2030. “Our mission is vital,” Hyams stated. “Helping people get jobs is a profound privilege.”
For those leaving the company, Hyams extended his gratitude and committed to providing support in the coming days and weeks. “You helped millions of people get jobs and helped Indeed to be a better place. Thank you,” he said.