Recruit Holdings, the parent company of popular job platforms Indeed and Glassdoor, has announced it will cut approximately 1,300 jobs globally as part of a major restructuring effort driven by artificial intelligence (AI).
The layoffs will affect about 6% of the company’s HR technology division, primarily in the United States but extending across various departments and international regions. According to an internal memo from CEO Hisayuki “Deko” Idekoba, the restructuring aligns with the company’s push to embed AI more deeply into its products and services.
As part of the changes, Glassdoor’s operations will be integrated into Indeed’s platform, signaling a strategic consolidation of the two brands. This merger will also lead to leadership changes, with Glassdoor CEO Christian Sutherland-Wong set to step down on October 1. Additionally, LaFawn Davis, Indeed’s Chief People and Sustainability Officer, will also depart.
Idekoba emphasized the transformative role of AI in recruiting, stating, “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers.” He noted that Recruit’s internal data shows AI is now responsible for a job match every 2.2 seconds, reinforcing its potential to streamline hiring.
This move mirrors a broader trend in the tech sector, where companies like Microsoft, Meta, TikTok, and Intel have also announced workforce reductions as they pivot towards AI-powered technologies. However, the shift has raised concerns over the growing human cost of automation.
Recruit Holdings’ decision underscores the dual narrative emerging in the tech world: a race to innovate through AI, often at the expense of thousands of jobs.