I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs. The US-based job search platform announced on Wednesday it will lay off 15% of its workforce, or about 2,200 staff, which is a result of the layoff trend. The news makes the popular job listing site the latest in a series of tech companies that have let go of their employees as part of the cost-cutting measure because of the slowdown in the tech sector.
Chief Executive Chris Hyams will take a 25% cut in base pay in addition to the layoff. Indeed, the job boom was fueled by the pandemic. Hyams said the company was too large and that future job openings were at or below pre-pandemic levels.
According to a blog post, Indeed said that employees will get January through March bonuses, regular pay for the month, accrued time off and access to mental health services as part of the severance package.
I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs. The decision I sincerely hoped I would never have to make was a decision I truly hoped I would never have to make. We expect to let about 2,200 people go. This is about 15% of our team. Nearly every team, function, level and region at Indeed and Indeed Flex have been affected by the cuts. Indeed s earnings from human resource technology are expected to decrease during the fiscal years 2023 and 2024, according to Hyams. He stated that job vacancies in the United States are expected to drop to 7.5 million or possibly lower in the next two to three years, returning to pre-pandemic levels.
The severance package for the affected employees will have some additions based on role and location. The company said that impacted employees will receive:
Access to ongoing career placement services for six months.
The global economic downturn that started in the second quarter of 2022 is beginning to have a major impact on tech companies. According to Layoffs, at least 517 companies have let go of 152,858 tech workers. A site that has tracked tech layoffs using data from public reports, FYI has been tracking all tech layoffs.