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Indeed, Glassdoor to Cut 1,300 Jobs Amid AI Shift, Memo Reveals

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Recruit Holdings, the Japanese parent company of job sites Indeed and Glassdoor, plans to reduce its workforce by approximately 1,300 employees as part of a strategic shift toward artificial intelligence, according to a memo reviewed by Reuters on Thursday. This reduction amounts to around 6% of its HR technology segment staff and primarily affects the U.S. market, targeting roles in research and development, growth, and people and sustainability teams. However, the layoffs will impact multiple functions across several countries.

While the company did not state a specific reason for the job cuts, CEO Hisayuki “Deko” Idekoba emphasized the transformative impact of AI, saying, “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers.”

This move aligns with a broader trend among U.S. technology companies, including Meta and Microsoft, which have recently announced workforce reductions to focus on AI initiatives while managing slower economic growth.

In addition, Recruit plans to merge Glassdoor’s operations into Indeed. As part of this restructuring, Glassdoor CEO Christian Sutherland-Wong will step down effective October 1. LaFawn Davis, Indeed’s chief people and sustainability officer, will also leave on September 1, with Ayano Senaha, Recruit’s chief operating officer, succeeding her.

Recruit acquired Indeed in 2012 and Glassdoor in 2018 and currently employs around 20,000 people in its HR technology division. Earlier in 2024, Indeed revealed plans to cut 1,000 positions, following a previous reduction of approximately 2,200 jobs announced a year prior, which represented 15% of its staff.

Microsoft to Cut Around 4% of Workforce Amid Heavy AI Investment Costs

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Microsoft announced it will lay off nearly 4% of its global workforce as part of efforts to control costs while investing heavily in artificial intelligence infrastructure. The company, with about 228,000 employees as of June 2024, had already begun layoffs in May affecting around 6,000 workers, primarily in sales roles.

The tech giant has pledged $80 billion in capital spending for fiscal year 2025, but the soaring costs of expanding AI capabilities have pressured profit margins. Microsoft’s cloud margin for the June quarter is expected to decline compared to the previous year.

In addition to workforce reductions, Microsoft plans to simplify its organizational structure by reducing management layers and streamlining products, processes, and roles. The gaming division, including its Barcelona-based King unit known for Candy Crush, will also see job cuts of about 10%, or roughly 200 employees.

Microsoft’s layoffs follow a broader trend among Big Tech companies investing in AI, with peers like Meta trimming about 5% of its lowest performers, Alphabet cutting hundreds of jobs, and Amazon reducing staff across various segments amid economic uncertainties and rising operational costs.

Amazon CEO Andy Jassy Signals Workforce Reduction as AI Automates Routine Jobs

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Amazon is preparing to reduce its total corporate workforce over the next few years due to the rapid adoption of generative AI and automation, CEO Andy Jassy said in an internal note on Tuesday. The company expects that AI-driven efficiencies will reshape job roles, decreasing demand for some routine tasks while increasing demand for others.

Amazon employed more than 1.5 million full-time and part-time workers by the end of 2024, alongside temporary and contract staff. Jassy highlighted the company’s ongoing use of AI to optimize inventory management, improve forecasting, upgrade customer service chatbots, and enhance product detail pages.

“As we roll out more Generative AI and agents, it should change the way our work is done. We will need fewer people doing some of the jobs that are being done today, and more people doing other types of jobs,” Jassy said.

Industry analysts note that this trend reflects a broader shift across the tech sector. Gil Luria of D.A. Davidson commented that AI’s rapid productivity gains are leading to slower hiring, particularly in software development roles.

Other major tech firms like Microsoft and Google have also emphasized AI’s role in boosting productivity while concurrently reducing headcount through layoffs.

While AI is expected to reshape the workforce rather than cause mass unemployment, many roles will evolve significantly in the coming years as automation accelerates.