American employment website Indeed has announced that it would be letting go of 15 percent of its team, which amounts to nearly 2,200 employees. Chris Hyams, CEO, Indeed said that almost every team, function, level and region at Indeed and Indeed Flex have been impacted by this decision. Employees impacted by Indeed layoffs have been sent emails with the subject line of “Your Position Has Been Impacted” and those not impacted have been sent “Your Position Has Not Been Impacted.”
Why Have Indeed Layoffs Been Announced?
Chris Hyams has stated that the reason for Indeed layoffs are that there will be a decline in the HR tech revenue in 2023, which is likely to continue in 2024. “Last quarter, US total job openings were down 3.5% year over year, while sponsored job volumes were down 33%. In the US, we are expecting job openings will likely decrease to pre-pandemic levels of about 7.5 million, or even lower over the next two to three years,” said the CEO in an email sent to his employees.
He also stated that future job openings will be at or below pre-pandemic levels, and Indeed as an organisation was too big for that. “I will be taking a 25% cut in base pay. Additionally, more than 75% of my total compensation is directly tied to Indeed revenue growth, and is at risk given current trends. We will be instituting additional cost saving measures moving forward, which I will outline,” added Hyams.
What Employees Impacted by Indeed Layoffs Will Receive?
Fired employees will receive the following benefits:
- 16 weeks of base salary, or two weeks for every year of service, whatever amounts to more.
- US employees will receive four months of continuation of health coverage.
- Accrued paid time off for wherever applicable.
- Access to ongoing career placement services for six months.
- Access to ongoing mental health services for twelve months.
- Cash payout equivalent to employee restricted stock units scheduled to vest on May 1.
“While we’re facing challenging times ahead, I am confident that we will manage through it, and we will come out stronger on the other side,” said Hyams in conclusion.
