Job listing company, Indeed has laid off 2,200 employees, which accounts for 15% of the company’s workforce.
This was revealed in an all-hands meeting by CEO Chris Hyams.
Hyams elaborated on the decision in a blog post, stating that the job market is expected to cool further.
“With future job openings at or below pre-pandemic levels, our organization is simply too big for what lies ahead,” Hyams wrote.
“We have held out longer than many other companies, but the revenue trends are undeniable. So I have decided to act now.”
The CEO’s base salary will be reduced by 25%.
Employees were notified of their job status via email within an hour of the announcement, with subject lines reading “Your Position Has Been Impacted” or “Your Position Has Not Been Impacted.” Employees in the United Kingdom, Ireland, the Netherlands, and Japan may still be in the dark as a result of local regulations.
Indeed is offering at least 16 weeks of base salary pay, PTO compensation, a cash payout for unvested RSUs, and access to career placement and mental health services.
Employees in the United States are eligible for four months of health insurance through COBRA.
They can also keep their work laptop, which will be immediately disconnected from Indeed business systems; however, Slack, email, and Workday access will not be impacted immediately, allowing people to say goodbye to colleagues and remove personal materials from their laptops, which will be remotely reset.
Indeed makes money by allowing businesses to sponsor job listings, which allows the listing to be seen by more job seekers.
However, according to Hyams, sponsored job volumes were down 33% year on year in the fourth quarter, while total job openings were down 3.5%.