Tuesday, May 21, 2024

This job search platform cuts around 1,000 jobs in second round of layoffs, check company’s CEO message

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Mass layoffs at some of the world’s biggest companies have dominated headlines over the last couple of years, and the trend is still ongoing. According to layoffs.fyi, 16,398 startup employees received pink slips in 2023. This figure was 15 per cent higher than the amount laid off in 2022.

Following the trend and facing increased competition, job search platform Indeed has laid off around 1,000 of its employees, the company announced on Tuesday, May 14. This is around 8 per cent of the total workforce and this is the second layoff by the company in the last two years. 

Layoff reason

The company claims that the layoffs would allow it to focus on its core business of offering job search services to companies and job seekers. Indeed is facing huge competition from rival employment platforms, like LinkedIn and Glassdoor. It is also under pressure from investors to increase its profitability.

CEO message to employees

In a memo released publicly, CEO Chris Hyams said that, unlike last year’s across-the-board reduction of 2,200 workers, the latest cuts will be more concentrated in the US. The teams most affected by the layoffs will be research-and-development and go-to-market teams, he said. 

In a message to employees, Hyams wrote, “This was a difficult decision, but it is necessary to simplify our organisation and make it easier to make decisions.” 

Through these layoffs, the company is aiming to reduce “too many organizational layers”. 

“We have been working to simplify every aspect of our business, but without meaningful change, we can’t get where we need to go,” Chris Hyams said.

He assured that the company is committed to working closely with its human resources, legal, diversity, equity, and inclusion teams to ensure that these layoffs do not disproportionately affect underrepresented groups.

Hyams mentioned that an updated organisational structure will be shared at a later date to reflect these changes.

What laid-off employees will get

All the laid-off employees will be given a higher separation package by the company. This package includes severance, healthcare payment (wherever necessary), outplacement service, and some other facilities.

A look at layoffs in 2023 and 2024

According to intellizence, a data-providing site, the global auto company Tesla was the top company to lay off 6,020 employees in 2023 and 2024. The number was followed by other international companies like Southwest Airlines, Nike, Microsoft, American Airlines, Lloyds Banking Group, Apple, and many others.

Last week, Marinus Pharmaceuticals laid off its 20 per cent of its workforce in a cost-cutting move.

In India, the biggest layoffs include in the companies like Cult.fit, Tata Steel, Amazon, Flipkart, Swiggy, Nokia, SpiceJet, IBM, Sony, and Paytm Payments Bank among others.

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