Job search platform Indeed to lay off 2,200 employees, or 15% of its workforce
“I am heartbroken to share that I have made the difficult decision to reduce our headcount through layoffs.”
US-based job search platform has joined the layoff trend announcing on Wednesday it will lay off 15% of its workforce, or about 2,200 staff. 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 caused by softening economic growth amid the slowdown in the tech sector.
In addition to the layoff, Chief Executive Chris Hyams will also take a 25% cut in base pay. Indeed hired too quickly during the pandemic-fueled job boom. Hyams said the company was too large and that the future job openings, in general, were at or below pre-pandemic levels.
In a blog post, Indeed said affected employees will receive January through March bonuses, regular pay for the month, accrued paid 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. This is a decision I truly hoped I’d never have to make,” the company said. “We anticipate we will be letting approximately 2,200 people go. This is roughly 15% of our team. The cuts come from nearly every team, function, level and region at Indeed and Indeed Flex.”
Hyams stated that Indeed’s earnings from human resource technology are expected to decrease during the fiscal years 2023 and 2024. Additionally, he mentioned that job vacancies in the United States are anticipated to drop to 7.5 million or possibly lower in the next two to three years, returning to pre-pandemic levels.
Indeed said the severance package for the affected employees “will have some additions based on role and location. According to the company, impacted employees will receive:
- 16 weeks of base salary, or two weeks for every year of service, whichever is greater
- Four months of COBRA (US only)
- Accrued PTO (where applicable)
- 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 would vest on May 1 with the standard one year vesting cliff waived. The payout will be calculated at the closing stock price on Feb 1. If the closing price on May 1 is higher, you will receive an additional payment for the difference.*
- Access to ongoing career placement services for six months
- Access to ongoing mental health services for twelve months
The global economic downturn that started in the second quarter of 2022 is beginning to have a major impact on tech companies. At least 517 companies have let go of 152,858 tech workers, according to Layoffs.FYI, a site that has been tracking all tech layoffs using data compiled from public reports.