Leading job portal Indeed lays off 2,200 employees, CEO ‘heartbroken’
Call it ironic but leading job portal Indeed that helps thousands land their dream jobs has itself laid off 2,200 employees, or 15 per cent of its workforce.
An ‘heartbroken’ Indeed CEO Chris Hyams announced that job cuts come from nearly every team, function, level and region at Indeed and Indeed Flex.
“We anticipate we will be letting approximately 2,200 people go. This is roughly 15 per cent of our team. The specific decisions on who and where to cut were extremely difficult, but they were made with great care,” he said in a blog post late on Wednesday.
“Leading a company whose mission is to help people get jobs, every single day I think about how important a job is in a person’s life. Losing a job is extraordinarily hard, financially and emotionally,” he added.
The CEO said he will take a 25 per cent cut in base pay. Additionally, more than 75 per cent of “my total compensation is directly tied to Indeed revenue growth, and is at risk given current trends,” he said.
The company will share information directly with everyone impacted and everyone outside of the UK, Ireland, the Netherlands and Japan will receive an email informing them of their status.
If your position has been eliminated, the subject will be “Your Position Has Been Impacted.”
If your position has not been eliminated, the subject will be “Your Position Has Not Been Impacted.”
“In the UK, Ireland, the Netherlands and Japan, unfortunately, local regulations will mean a longer wait. We will communicate with all of you today to outline the specifics in your region,” said the CEO.
Under the severance agreement, employees will receive 16 weeks of base salary, or two weeks for every year of service, whichever is greater.
“A cash payout equivalent to your RSUs scheduled to vest on May 1. For employees whose initial grant date was August 1, 2022 or later, you will receive a partial payout for RSUs that vest on May 1 with the standard one year vesting cliff waived,” Hyams informed.
The payout will be calculated at the closing stock price on February 1.
Last quarter, US total job openings were down 3.5 per cent year over year, while sponsored job volumes were down 33 per cent.
“In the US, we are expecting job openings will likely decrease to pre-pandemic levels of about 7.5 million, or even lower over the next two to three years,” said the company.