Recruit Holdings, the Japanese parent company of job sites Indeed and Glassdoor, is laying off approximately 1,300 employees, or around 6% of its HR technology workforce. The decision, revealed in an internal memo seen by Reuters, reflects the company’s strategic pivot toward artificial intelligence (AI) to enhance recruitment processes and streamline operations.
The cuts, mostly based in the United States, will impact teams across research and development, growth, and people and sustainability functions. However, roles in other countries and departments will also be affected. Notices to affected employees are being issued Thursday.
Glassdoor to merge with Indeed
As part of the restructuring, Recruit will fully integrate Glassdoor into Indeed. This operational merger will see Glassdoor CEO Christian Sutherland-Wong step down effective October 1. Additionally, LaFawn Davis, Indeed’s chief people and sustainability officer, will exit on September 1. She will be replaced by Ayano Senaha, Recruit’s chief operating officer.
CEO Hisayuki “Deko” Idekoba emphasised AI’s growing role in transforming recruitment. “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers,” he said in the memo.
At a JPMorgan Chase technology conference earlier this year, Idekoba described the HR industry as a $300 billion-plus sector still heavily reliant on manual processes. Recruit, he said, aims to simplify hiring through AI, technology, and data, noting that currently about one-third of the company’s programming code is AI-generated, a figure expected to reach 50 per cent soon.
What do we know about layoffs?
The move mirrors similar AI-driven workforce reductions by major tech firms like Meta and Microsoft. In fact, this is the third major round of layoffs at Indeed since 2023. Experts caution that AI’s rise could displace white-collar jobs across industries. Ford CEO Jim Farley recently predicted at the Aspen Ideas Festival that AI might eventually replace half of all white-collar roles in the US.
Recruit Holdings currently employs about 20,000 people in its HR technology segment.