Around 1,300 employees from Indeed and Glassdoor are set to lose their jobs following a strategic decision by their parent company, Recruit Holdings, to prioritize artificial intelligence (AI) in its operations. This decision is particularly ironic given that these platforms are designed to help users secure employment. The layoffs will impact various departments, including research and development and technology, indicating a broad reorganization within the company.
Recruit Holdings has stated that it is shifting focus towards simplifying the hiring process through AI technology. In a memo to staff, CEO Hisayuki Idekoba emphasized, “AI is changing the world, and we must adapt.” The company claims that its AI technology can connect job seekers with employment opportunities every 2.2 seconds, a boast that reflects its commitment to integrating new technologies into its services.
The restructuring will also see the integration of Glassdoor’s operations into Indeed, which may lead to further changes in how both platforms function. This move comes as both companies are experiencing significant shifts in leadership; Glassdoor‘s CEO is set to depart on October 1, 2023, while Indeed’s chief people officer will also be leaving the organization.
This trend of job cuts due to AI adoption is not new. Recently, the Recruit Holdings group announced a significant reduction of 9,000 jobs across its operations. Despite this, leadership maintains that AI is not intended to replace human workers entirely. In a June 17 memo, the 57-year-old CEO noted that the corporate workforce would likely shrink in the coming years due to “efficiency gains from using AI extensively across the company.”
The implications of these job cuts extend beyond the immediate layoffs. Many employees whose roles involved assisting others in finding work are left uncertain about their futures. The shift towards AI in recruitment processes raises questions about the evolving landscape of employment, as more companies adopt technologies that streamline operations at the expense of traditional roles.
As the integration of AI technologies continues to transform the job market, the challenges faced by employees in the recruitment sector reflect a broader trend in various industries. While companies like Recruit Holdings strive to remain competitive by embracing new technologies, the human cost of these decisions remains a pressing concern.
