By John Q. Hosedrinker 
Recruit Holdings, the parent company of Indeed and Glassdoor, is cutting approximately 1,300 jobs, representing about 6% of its workforce, as it shifts towards artificial intelligence. The layoffs will primarily affect research and development, as well as “people & sustainability” teams, while also impacting other areas and regions. This strategic move will see Glassdoor operations integrated into Indeed, and is driven by a desire to simplify hiring using AI to reduce manual labor costs. The company aims to increase AI’s role in its programming code, and expects it to handle half of its code soon.
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Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: It seems like the AI revolution is here, or at least that’s the story being spun, as Indeed and Glassdoor announce significant layoffs, impacting 1,300 employees. There’s been a flurry of bad news, with multiple rounds of layoffs within the last couple of years. Adding to the drama, the CEO of Indeed recently stepped down, and the President/CEO of Glassdoor is heading for the exit in October. The narrative being pushed seems to be that AI is the culprit, but the reality is often more complex.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: Let’s be honest, the AI explanation feels a bit like a convenient smokescreen. These companies have likely been struggling with dwindling revenue for years, and the workforce appears bloated. The significant pullback in hiring since the peak of 2021 has undoubtedly reduced the demand for their services. Anyone who’s waded through the job search process recently knows that these platforms aren’t exactly beloved. Upselling and a general lack of understanding of what businesses need has led to a general frustration that has been felt across many job seekers. It is quite a paradox to see companies whose core business is centered around people finding jobs announcing layoffs due to AI.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: The question on everyone’s mind, or at least mine, is how does it take 1,300 people to run Indeed? The economic climate, combined with the hype surrounding AI, has given companies the green light to explore replacing white-collar jobs, particularly entry-level positions, with AI. This could be just the tip of the iceberg. The potential impact of these shifts on the job market is significant.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: There’s a strong belief in many companies that AI performance will improve significantly in the coming quarters. It’s not about robots taking over, but rather AI performing entry-level tasks with minimal human intervention, that could change the job market. This trend could lead to increased unemployment and potentially necessitate implementing universal basic income (UBI) to mitigate the impact. This is where things get tricky, as replacing labor with AI is a common way for companies to cut costs, increasing profits without lowering prices.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: It’s hard to see AI as the primary driver behind these layoffs. AI is not the advanced tool the media often paints it to be. It’s more likely a tactic to shift the workload onto the remaining employees. It’s almost ironic that these companies, which should be adapting to the increased use of AI to help people find jobs, are firing people and forcing them to use those same platforms to search for work. The labor market is already a tough place to navigate.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: Many are questioning the long-term viability of these platforms. The applications are often clumsy and fail to deliver relevant job recommendations. The job search platforms might just be the dinosaurs of the internet, living off of inertia. The whole process of finding jobs and candidates feels like a kafkaesque nightmare. This is all because of the busted customer acquisition model.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: The truth is, companies are not hiring, which means that traffic on job boards is down. They are likely to succeed only during good economies, which we are definitely not in right now. As interest rates go up, everything in SaaS gets hit hard.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: The key here is that the narrative of AI taking over is just that, a narrative. There’s some truth, in that the hiring process and related tasks are very easily replaced by AI. The underlying problem seems to be the companies themselves.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: This situation highlights the broader issue of companies trying to cut costs without lowering prices. There’s an underlying conflict of interest here, with companies reducing training costs while expecting other companies to provide trained employees. The real issue is that the product isn’t necessarily good.
Indeed and Glassdoor to lay off 1,300 workers as AI shakes up the job search business: When it comes to the future, many are wondering what these companies even do. If they aren’t innovating and if the hiring process is an antiquated nightmare, then they’re behind the curve and the AI transition may prove costly. Companies are investing heavily, not just in dollars, but also in knowledge through the layoffs, and their inability to replace humans may spell the end for them.