Indeed, Glassdoor to cut 1,300 jobs in AI-focused consolidation

Indeed and Glassdoor — both owned by the Japanese group Recruit Holdings — are cutting roughly 1,300 jobs as part of a broader move to combine operations and shift more focus toward artificial intelligence. 

The cuts will mostly affect people in the U.S., especially within teams including research and development and people and sustainability, Recruit Holdings CEO Hisayuki "Deko" Idekoba said in a memo to employees. The company didn't give a specific reason for the cuts, but Idekoba said in his email that "AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences."

The operations of the employee-reviews site Glassdoor are also being integrated into the jobs portal Indeed in an effort to deliver a simpler hiring experience for job seekers and employers, according to Idekoba's memo. Glassdoor CEO Christian Sutherland-Wong will leave the firm on Oct. 1 after 10 years with the company, the letter shows.

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Idekoba is overhauling the businesses just a month after returning to the helm of Indeed. He had previously served as Indeed's CEO from 2013 to 2019 and lives in Austin where the unit is based. In a statement about his return in June, he said Indeed will use AI to help speed hiring decisions. 

"Hiring is still too slow and too hard, and we're using AI to make it simpler and more personal — for both job seekers and employers," he said at the time. 

Indeed declined to comment on the percentages of jobs being eliminated at Indeed and Glassdoor. For context: Indeed announced plans last year to cut about 1,000 employees. That round of layoffs represented roughly 8% of its workforce at the time. A year earlier, it eliminated about 2,200 positions, making up roughly 15% of its total.