Indeed recently laid off about 1,000 employees, representing around 8% of its workforce. CEO Chris Hyams announced this move in a letter to employees on May 13, attributing the layoffs to a global slowdown in hiring. The majority of the affected employees were based in the U.S., primarily within the research and development (R&D) and go-to-market teams.
Hyams explained that while there have been some improvements in the global economy over the past year, Indeed is not yet positioned for sustainable growth. He highlighted the need to simplify the company’s structure to enhance decision-making speed. This streamlining effort is part of Indeed’s strategy to foster a more agile and responsive business model.
This is not the first significant reduction in Indeed’s workforce. In March of the previous year, the company laid off about 15% of its employees, approximately 2,200 people, in response to a steep decline in job postings. During that period, Hyams also took a reduction in his base pay. These measures helped stabilize the company’s profitability, but now Indeed is focused on reigniting growth.
One notable challenge Indeed faced was the rollout of an experimental payment model during the pandemic. The “pay per application” scheme, introduced in 2022, was designed to charge employers only for accepted applications from approved candidates. However, this model encountered several issues. Many small businesses struggled with the capacity to approve applications before being billed, leading to significant complications.
After spending a year trying to clarify and refine this model, Indeed decided to discontinue the pay-per-application scheme entirely in December 2023. Moving forward, the company has indicated it will focus on leveraging AI tools to enhance the recruitment process for both employers and job seekers.
In summary, Indeed’s recent layoffs and strategic pivots reflect the company’s ongoing efforts to adapt to the evolving job market and economic conditions. By simplifying its operations and exploring new technologies, Indeed aims to position itself for future growth and improved efficiency in serving its customers.