Indeed, Glassdoor to cut 1,300 jobs amid AI integration, memo shows

(Reuters) -Recruit Holdings, the Japanese parent of Indeed and Glassdoor, will reduce headcount by around 1,300 across the two job sites amid a shift in focus toward artificial intelligence, according to a memo seen by Reuters on Thursday.

The cuts — representing about 6% of the HR technology segment workforce — are mostly in the U.S. and within the research and development, growth, and people and sustainability teams, but span all functions and several countries, the memo said.

While the company did not provide a specific reason for the layoffs, Recruit CEO Hisayuki "Deko" Idekoba said "AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers".

U.S. companies, including tech giants Meta and Microsoft, have announced job cuts recently to prioritize AI investments as well as to navigate slowing economic growth.

Recruit also said it would integrate Glassdoor operations into Indeed. As a result of which, Glassdoor CEO Christian Sutherland-Wong would leave the company, effective October 1.

LaFawn Davis, chief people and sustainability officer of Indeed, will also step down effective September 1, and will be succeeded by Ayano Senaha, chief operating officer of Recruit.

Recruit, which acquired Indeed in 2012 and Glassdoor in 2018, currently has 20,000 employees in the HR technology business unit.

In 2024, Indeed announced plans to eliminate 1,000 positions. This followed a previous announcement a year earlier, when the company said it would cut about 2,200 jobs, representing 15% of its staff.

(Reporting by Kritika Lamba in Bengaluru; Editing by Shilpi Majumdar)