According to a memo seen by Reuters, Recruit Holdings, the Japanese parent company of Indeed and Glassdoor, plans to lay off about 1,300 employees. In the company’s HR technology division, this amounts to roughly 6% of the workforce. Research and development, growth, people, and sustainability teams are among the departments affected by the layoffs, which are mostly centered in the United States but span multiple nations and functions.
Although Recruit did not specifically explain the reasoning behind these cuts, it is consistent with CEO Hisayuki “Deko” Idekoba’s remarks, which highlighted the revolutionary potential of AI. He said, “AI is changing the world, and we must adapt by ensuring our product delivers truly great experiences for job seekers and employers.” This change is similar to a pattern observed in other significant IT firms, such as Microsoft and Meta, which have also announced layoffs in order to prioritize AI investments in the face of economic difficulties.
According to reports, Recruit Holdings will incorporate Glassdoor’s operations into Indeed as part of this organizational reorganization. Christian Sutherland-Wong, the CEO of Glassdoor, will leave the company as a result of this integration on October 1. Furthermore, Ayano Senaha, the COO of Recruit, will take over as Indeed’s chief people and sustainability officer when LaFawn Davis steps down on September 1. In 2012, Recruit started working with Indeed, and in 2018, it acquired Glassdoor. These adjustments are a component of a larger initiative to streamline operations and concentrate on key business domains.
This scenario fits into a larger pattern in the tech sector, where many businesses will lay off employees in 2025 as they deal with economic challenges and AI-driven restructuring. Notably, major layoffs have also been reported by other companies including Automattic and TikTok. Even as they cut staff in other departments, businesses are putting more and more emphasis on AI positions. This change emphasizes how crucial AI is becoming to determining the nature of labor in the future.
In 2025 alone, the tech industry’s current wave of layoffs has resulted in over 100,000 job losses worldwide. As they prioritize AI integration and adjust to shifting market conditions, major companies like IBM, Intel, and Microsoft continue to reduce their workforces. Microsoft, for example, just announced 9,100 layoffs that will impact its Xbox and gaming operations, among other departments. These layoffs serve as a reminder of the continuous difficulties businesses have in the quickly changing tech sector.
Additionally, IBM has been laying off some 8,000 workers, primarily from its human resources division. This comes after an internal shift towards automation, where jobs that were formerly handled by human staff are progressively being replaced by AI systems. This change demonstrates how AI is increasingly affecting employment positions and the strategic realignments that tech businesses are undergoing. AI integration is changing the nature of work and the skills needed in the tech sector.
