Online job search Indeed to cut 2,200 jobs to save $500 mn

Indeed, U.S.-based job search platform with 300 million users, said it will cut about 2,200 jobs, or 15 percent of its workforce to save $500 million.
Online job search platformIndeed Chief Executive Officer Chris Hyams will take a 25 percent cut in base pay as part of the cost cutting drive. Chris Hyams said future job openings in general were at or below pre-pandemic levels and that the company was too large.

For Indeed, among other support measures as part of the severance package, affected employees will receive January through March bonus, regular pay for the month, accrued paid time off and access to mental health services, according to a company blogpost.

Indeed’s revenue from human resource technology will decline in fiscal 2023 and 2024, Chris Hyams said. U.S. job openings will likely fall to pre-pandemic levels of 7.5 million or even lower in the next two to three years.

Japan-based Recruit Holdings, which owns the online job search platform Indeed, said it expects to record restructuring charges of approximately 18 billion yen related to employee severance benefits and other associated costs in the fourth quarter of fiscal 2022.

In addition, the company expects to record a one-time charge of 12 billion yen for impairment losses in relation to software in the Matching & Solutions segment and the Staffing segment in the fourth quarter of fiscal 2022.

The company expects the effect of the workforce reduction in the HR Technology segment to be 500 million US dollars, equal to approximately 63.5 billion yen, in annualized cost savings for the fiscal year ending March 31, 2024 (FY2023).